STIHL grows worldwide

In the first eight months of the current year the STIHL group achieved turnover growth of 14.1 percent compared to the same period last year. As of the end of August worldwide turnover was 1.38 billion euros. “In our core business with gasoline chainsaws we took advantage of the higher world market volume and were able to gain market shares,“ said Executive Board Chairman Dr. Bertram Kandziora at the company’s autumn press conference. Growth can be attributed primarily to an increase in unit sales. The dip in value of the euro against the U.S. dollar, Brazilian real and Polish zloty over the year had a favorable influence on growth (1.9 percent).

German market shows above-average growth
The highest total turnover growth rates were recorded in the United States of America. However, the demand for STIHL products also climbed substantially in the markets of Western and Eastern Europe. “Growth in Germany was up by a very satisfactory 16 percent,“ stated Dr. Kandziora. Even the Iberian peninsula, which had to struggle with drought yet again this year, recorded increased sales of chainsaws and other outdoor power tools.

Production and turnover boosted at German founding company
Turnover of the German founding company, ANDREAS STIHL AG & Co. KG, grew by 13.5 percent over the same period last year to 577.5 million euros. The founding company comprises seven manufacturing plants in Germany. It supplies the German and world markets, mainly with high grade professional machines for discerning users. There was a marked increase in the production output of chainsaws and guide bars at the founding company.

Worldwide workforce and production increase
The group was able to considerably increase unit sales of chainsaws, power tools, bars and chains, which resulted in higher production output and additional jobs. As of August 31, 2006, the STIHL group’s worldwide workforce was up by 892 to a total of 9,356, which represents a change of 10.6 percent over the previous year. The number of employees at the founding company was up by 3.7 percent to 3,851 – or 136 new jobs. As of August 31, 2,886 men and women were employed in Waiblingen, 304 in Ludwigsburg, 594 in Prüm Weinsheim and 67 in Wiechs am Randen. The company has invested in expansion of the production capacities throughout the world in order to keep pace with unit sales in the medium and long term.
 
VIKING continues upward trend
VIKING, the STIHL group’s green brand, also reports favorable business developments. Lawn mowers recorded double-digit sales growth and gained market shares. VIKING now has a network of almost 10,000 servicing dealers in Europe. The company is currently in the process of enlarging its facilities in Langkampfen, Austria. Land for further expansion has also been acquired.

New products presented at International Garden Trade Fair
STIHL presented a number of innovations at the GAFA 2006 International Garden Trade Fair in Cologne, including the STIHL MS 441 professional chainsaw which is equipped with a newly developed two-stroke engine featuring four-port technology and stratified scavenging. The new STIHL MS 280 is the world’s first chainsaw with intelligent engine management, in which the full-load mixture and maximum engine speed are controlled electronically. This innovative control system guarantees that optimum engine power is always available and improves convenience and environmental friendliness. Other products shown to trade visitors at GAFA included the new STIHL HT 131 pole pruner and the new STIHL FS 310 brushcutter with 4-Mix engine.

Chairman optimistic
STIHL expects the strong growth to continue in the coming months. The rising energy prices make heating with wood increasingly attractive and this, in turn, boosts sales of chainsaws, chains and bars. Executive Board Chairman Dr. Kandziora: “An ever growing number of customers are changing to our brand after disappointments with cheap products and appreciate the high “Made by STIHL” quality. With our new products and long-term investments in development, production and distribution, we are creating higher capacities to meet the demands of future growth.”

Voucher copy requested

Captions:

1: Dr. Bertram Kandziora, Chairman of the Executive Board and Head of Manufacturing and Materials.
2: During the STIHL press conference, Dr. Betram Kandziora explained the special features of the new MS 441.

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