Bosch warns it won't reach profit target this year

STUTTGART, Germany Wed Jan 23, 2013 4:11am EST

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STUTTGART, Germany Jan 23 (Reuters) - German conglomerate Robert Bosch warned it will not reach its long-term profit target this year once again, after it booked heavy losses at its solar energy business in 2012.

Earnings before interest and tax (EBIT) fell to around 2 percent of revenue, due mainly to a 1 billion euro loss in its photovoltaic operations, down from 5.2 percent in the previous year.

Bosch now values its photovoltaic business at zero in its accounts, having written down the assets entirely last year following a decision in 2011 to impair all of its remaining goodwill.

Chief Executive Volkmar Denner told reporters late on Tuesday that it would not achieve this year the 8 percent EBIT margin target it believes is necessary to secure the financial independence of the unlisted company. (Reporting by Hendrik Sackmann, writing by Christiaan Hetzner)

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