STUTTGART, Germany, Jan 29 (Reuters) - One of the world's biggest auto suppliers Robert Bosch said late on Wednesday higher global car demand and the ongoing diesel boom in Europe will help lift the company's sales and earnings this year.
Bosch Chief Executive Franz Fehrenbach also said the company's return on sales had risen to about five percent last year from 4.1 percent in 2002 due largely to a stronger performance at the automobile technology business.
His comments were embargoed for publication at 0830 GMT on Thursday. The unlisted German company said pre-tax profit rose to about 1.8 billion euros ($2.3 billion) in 2003 from 1.4 billion a year ago.
However, the stronger euro hurt sales which rose just four percent to 36.3 billion euros. Growth would have been greater if the euro had not appreciated so strongly against the U.S. dollar, said Fehrenbach.
However, he was upbeat about this year, pointing to the expected rise in worldwide auto demand. "We are in a good position to use the opportunities we will get from the coming upturn," said Fehrenbach.
Auto parts companies have been squeezed by their customers, car manufacturers, in the last two or three years due to declining vehicle demand and price erosion. Many have restructured in a bid to cut costs and hope to benefit once the economic conditions improve.
Most experts predict a roughly two percent rise in Western European car sales this year.
Bosch is vying with the U.S.'s Delphi Corp , which earlier this month posted weaker fourth quarter earnings, to become the world's biggest supplier.