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CORRECTED-UPDATE 1-Robert Bosch to cut jobs, sees tough 2009

Published 04/23/2009, 05:51 AM
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(Corrects bullet point on net profit to 372 million eur)

* Says will cut jobs in Germany and abroad

* Expects 2009 pre-tax loss as sales fall 10-15 percent

* Says 2008 net profit falls to 372 million eur vs 2.85 bln

(Adds details and background)

STUTTGART, Germany, April 23 (Reuters) - Germany's Robert Bosch, the world's biggest car parts group, will slash jobs this year in Germany and abroad as its sales slump as much as 15 percent amid a sector-wide crisis.

"For 2009, Bosch expects one of the most difficult years in the company's history, with substantial risks to sales and earnings," Chief Executive Franz Fehrenbach told a news conference on Thursday, forecasting a loss before taxes.

He said the recession this year will be severe, citing a "marked sales decline" in the first-quarter. He gave no more details.

Bosch will go beyond its current programme of shortening work hours and instead reduce staff, he added. Bosch has already cut 3,000 of its 282,000 employees abroad.

The number of layoffs will increase "significantly", Fehrenbach said.

Bosch said it expects automotive production worldwide will fall by at least 10 percent.

The unlisted company has previously said sales at its automotive technology operations, which generate about two-thirds of overall sales, declined 7 percent last year.

Its pretax profit last year fell to 940 million euros ($1.22 billion) from 3.8 billion, while revenues declined 2.6 percent to 45.1 billion.

It said net profit last year fell to 372 million euros from 2.85 billion in 2007.

Rival European automotive suppliers Continental AG and Valeo have also been cutting jobs to try to weather the storm.

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