STIHL remains on growth course

• Unit sales, turnover and workforce up again in 2005
• Almost 9 percent more jobs worldwide
• Executive board optimistic for anniversary year 2006

The STIHL Group was able to increase turnover by 11.8 percent (10.1 percent after adjustment for currency movements) in fiscal year 2005 to €1.812 billion. This growth in turnover is essentially due to higher unit sales. “We were able to further strengthen our global market position. In 2005, STIHL launched 25 new products and product versions. This reinforced our position as world technology leader and attracted new customers,” explained STIHL AG chairman Dr. Bertram Kandziora at the annual press conference.

Unit sales of chainsaws up 18 percent
Compared with the previous year, the share of turnover achieved outside Germany rose slightly to 88.3 percent. The EU accounts for 44 percent of total turnover. High growth rates were recorded in all major markets, while they were above average in America and Eastern Europe. As in the previous year, more power tools were sold than chainsaws. Unit sales of chain saws climbed 18 percent and those of power tools almost 12 percent over the previous year. The output of powerheads, guide bars and chains in the international manufacturing network was upped in response to the higher unit sales. The number of employees in the STIHL Group grew 8.8 percent to 8,576 as of December 31, 2005. This means that 696 new jobs were created in 2005.

Investments at high level
The STIHL Group’s investments were €132.6 million, significantly higher than the previous year (2004: €114.2 million). Of this total, about two-thirds went to the subsidiaries at home and abroad and one third to the founding company. The Swiss chain production plant invested in a new building to expand its capacity. Construction of a new production plant was started in Qingdao, China. The sales subsidiaries in Romania, Austrialia, New Zealand and the new subsidiary in Bulgaria built new premises and logistics centers.

Strong turnover growth at founding company
ANDREAS STIHL AG & Co. KG, the STIHL Group’s founding company in Germany, increased turnover to €783.7 million in 2005, a rise of 9.1 percent over the previous year. Higher production output created about 100 new jobs at the founding company. The workforce therefore rose 2.9 percent to 3,661. As of December 31, 2005, there were 2,751 employees in Waiblingen, 564 in Prüm-Weinsheim, 285 in Ludwigsburg and 61 in Wiechs am Randen. At the end of 2005, 222 apprentices and trainees, including students, were employed at the founding company. They account for 6.1% of the workforce, which is well above the average for the industry. The 59 apprentices who finished their training in 2005 were offered permanent contracts of employment with the company. 64 young people started their vocational training in 2005.
 
Growth planned for anniversary year 2006
“STIHL celebrates its 80th anniversary in 2006. We have started the new year with elan, and the first quarter’s unit sales indicate that we will continue along our growth course. We are pleased that the signs in our anniversary year are pointing to profitable growth,” said Dr. Kandziora. Expansion of worldwide manufacturing capacities will be continued in 2006. A new guide bar manufacturing facility will be set up at STIHL Inc. in the United States. The inaugration of the wholly owned STIHL manufacturing subsidiary in China is planned for autumn of this year. STIHL aims to steadily bolster its worldwide position in the marketplace in 2006 with new products and product innovations as well as its own sales subsidiary in India.

Voucher copy requested

Captions:

Photo 1: Good news for the attending journalists, contented smiles in the board members faces

Photo 2: Executive Board of STIHL AG presented facts and figures of the business year 2005 (left to right) Wolfgang Zahn, Jürgen Steinhauser, Dr. Peter Dürolf, Dr. Bertram Kandziora

Photograph: STIHL (Reprint free of charge / voucher copy requested)