STIHL strengthens world market position

STIHL has further extended its position in the world market in the first eight months of the current year. In this period, the Group’s turnover increased a mere 1.9 percent over the same period last year  to EUR 1,488 million. However, had foreign exchange rates remained unchanged, turnover growth would have been  5.8 percent. The drop in value of the U.S. dollar over the euro had a negative impact on turnover. “In spite of the difficult conditions in the U.S.A., our biggest market, the STIHL Group was able to increase unit sales and turnover worldwide, and also gain market shares. In the U.S.A. in particular, we have gained market shares in a number of product categories,” said STIHL Executive Board Chairman Dr. Bertram Kandziora at the company’s autumn press conference on  September 16, 2008.

Unit sales up worldwide
The STIHL Group has increased its worldwide unit sales quite significantly and further improved market shares in almost all product sectors. The trend is increasingly in the direction of power tools with small and medium displacements. Eastern Europe is continuing to develop positively, as are the other large markets. The housing crisis in the U.S.A. has slowed ((weakened)) unit sales of chain saws, but STIHL has been affected far less than the competition. STIHL was able to record sales growth in the U.S. market at the beginning of the second half of the year. Further growth is expected in that market for the rest of the current year.

Substantial investments earmarked for German market
“This year and next year we will invest more than EUR 25 million in our Dieburg sales subsidiary in Hesse in order to support the planned growth in our domestic market,” stressed  Dr. Kandziora. A new order-picking building and a new high-bay warehouse are currently being built in Dieburg. When the buildings are completed, parts orders received late afternoon will be delivered to dealers the next morning; special orders will be delivered even faster. In addition, an extension of the training and service center is planned in order to provide more seminars for servicing dealers. The main aim of these activities is to improve customer satisfaction still further.

Worldwide workforce exceeds 10,000 for the first time
– course charted for further growth
The growth of the STIHL Group is also reflected in the number of new jobs created. As of August 31, 2008, the Group’s worldwide workforce had grown to 10,066, which is 214 or 2.2 percent more than the same period last year.

“We will continue to grow with new, innovative products and broadly based development of our worldwide dealer network,” said Dr. Kandziora on the subject of STIHL’s growth strategy. “For example, we offer our servicing dealers support in introducing the new shop system and modernizing their business premises. In addition, we help them redesign their workshops to achieve greater profitability.”

German founding company feels effects of worldwide decline in new building starts
In the period from January to August 2008, turnover of the German founding company, ANDREAS STIHL AG & Co. KG, dipped 10% to EUR 556 million. This development can be attributed to the building slump in individual markets, which has resulted in a drop in demand for professional models. In the Group’s international manufacturing network, the founding company specializes in the production of these professional models and therefore takes the brunt of the changes in this market segment.

Nevertheless, the number of permanent staff at the founding company increased by 22 over the past twelve months. New positions were filled in product development and more skilled workers taken on in the first eight months of this year. It is planned to hire more engineers in the coming months and in 2009 and generally increase the number of permanent staff. However, due to a reduction in the number of blue collar workers on limited contracts of employment and temporary help during the vacations, the total workforce at the founding company decreased 4.5 percent to 3,769 over the past 12 months. Of this total 2,798  are employed in Waiblingen, 597 in Prüm Weinsheim, 310 in Ludwigsburg and 64 in Wiechs am Randen.

Referring to the lack of skilled workers in Germany, Dr. Kandziora said: “Although the competition in the labor market is tough, STIHL still succeeds in filling open positions with qualified staff. Apart from our traditionally high level of training, we invest heavily in supporting students. More than 200 students are employed by the company every year as interns, those writing their theses and student apprentices. We give preference to these students when filling our open positions in engineering.”

World first in chains for entry-level chain saws
In line with tradition, STIHL presented a number of new products at its autumn press conference – including a world first: the STIHL Picco Duro saw chain. It is the first carbide-tipped low profile chain on the market for entry-level chain saws. It is so robust that it remains sharp up to four times longer than standard chains, even under extreme operating loads such as cutting cement-caked boards. Furthermore, STIHL showed new power tools, such as trimmers, blowers and shredder vacs, pressure washers, wet ‘n dry vacuum cleaners.

(Voucher copy requested.)

Caption:

Picture 1: Wolfgang Zahn, Dr. Klaus Detlefsen, Jürgen Steinhauser, Dr. Bertram Kandziora, Dr. Peter Dürolf
Picture 2: Executive board chairman Dr. Bertram Kandziora informed journalists about the previous key figures of 2008

 

 

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