Waiblingen, 9/13/2023 | Company press release
The STIHL Group looks back on a challenging eight months. The company achieved revenue of 3.84 billion euros in the period from January to August 2023, corresponding to a decrease of 1.5 percent compared to the same period in the previous year. If foreign exchange rates had remained unchanged, revenue would have grown by 0.9 percent. As at the reporting date of August 31, 2023, headcount fell by 0.5 percent to 20,311 employees worldwide. The reasons for this subdued business development are multifaceted: With the discontinuation of coronavirus measures, more consumer spending is once again being directed into areas such as tourism, culture and restaurants. In addition, economic slowdown, inflation and energy price trends are generally leading to restrained consumer behavior. In addition to worldwide spending restraint, stockpiles at specialist dealers are also having an impact on unit sales development for STIHL.
Michael Traub, STIHL Executive Board Chairman, emphasized: “After several years of strong growth, our markets are in a phase of temporary consolidation in 2023. But STIHL has sufficient experience of responding to fluctuations in operational business over its almost 100-year history. Our family-owned company has a long-term focus, and we are confident about the future.” At the press conference which took place as part of the International STIHL Media Day on September 13, Traub went on to say: “We are pursuing ambitious growth plans and continuing to invest at a high level, particularly in the future-focused technology of cordless products and in our global production and sales network.” This is how STIHL will further expand its German parent company. In addition to new cordless power tool production, the company is planning its own EC engine production for professional cordless products in Waiblingen. This step also further increases the depth of added value for cordless power tools.
“We are pleased to report that our cordless strategy is proving successful and that our customers around the world continue to show a high level of interest in battery-driven STIHL products. Compared to the same period last year, we have achieved positive growth rates for cordless chainsaws, other cordless power tools and our iMOW robotic mower,” said Michael Traub. “Some regional markets are also developing well. Nevertheless, we are seeing a worldwide decline in unit sales across all drive types.”
Overview of global markets:
“As an independent family-owned business with a high equity ratio of over 60 percent, we can continue to act and plan with a long-term perspective, despite short-term market development challenges. As such we are expecting further growth, especially in the cordless segment, and are investing heavily in the worldwide STIHL Group,” explained the STIHL Executive Board Chairman. Examples of measures here include:
From mechanical components such as the bar, chain, sprocket cover and housing to electronic components such as the battery pack and cable harness, STIHL already develops and produces many components for its own cordless products itself. For the first time, the company will now produce its own EC engines too. In-house production of the electric engine, which STIHL is already developing, will enable it to be even more effectively tailored to the complete product. This is a step that further improves the performance and quality of cordless products. Production will be based at the German head office in Waiblingen, and is initially set to comprise the production of EC engines for professional cordless products. It is planned that operations will start in 2025. The investment amount is around 17 million euros.
Michael Traub commented: “With production of the EC engine, we are now also making the core of the cordless power tool ourselves. This is an important strategic step in our transformation. With this move we are increasing our depth of value creation in the future-focused field of cordless products, strengthening our resilience in the supply chain and expanding our expertise. Last but not least, the decision to build up the company in Waiblingen is a clear commitment to our German head office, via which we will secure jobs in Germany in the long term.” The company currently manufactures mainly professional gasoline-driven power tools as well as components such as guide bars and plastic parts as well as battery packs in Waiblingen. STIHL will also be starting production of professional cordless power tools in Waiblingen from 2024.
The German parent company, ANDREAS STIHL AG & Co. KG achieved revenue of 1.11 billion euros in the period from January to August 2023, corresponding to a decrease of 7.1 percent compared to the same period of the previous year. The workforce increased by 2.6 percent to 6,004 employees. Of that total, 4,266 work in Waiblingen, 460 in Fellbach, 259 in Ludwigsburg, 921 in Weinsheim and 98 in Wiechs am Randen.
At the International Media Day, STIHL presented many innovations and new products that make it easier for customers to work in and with nature. The cordless portfolio in particular is being significantly expanded.
The following products are among those being brought to market for professional use:
The following cordless products for domestic garden maintenance are being launched:
The STIHL Brand Shop toy range is also complemented by an attractive new product developed in collaboration with Playmobil: The special STIHL PLAYMOBIL “STIHL TIMBERSPORTS® Edition” set. This set consists of two PLAYMOBIL athlete figures performing the “Hot Saw” chainsaw discipline and the “Standing Block Chop” axe discipline as well as a PLAYMOBIL cameraman. Bands, spotlights and displays in STIHL TIMBERSPORTS® design round off the competition scenario and prepare fans of all ages for the sporting highlight of the season: The STIHL TIMBERSPORTS® World Championship in Stuttgart in November.
Following the 2013 and 2016 events held in Stuttgart, the 18th edition is set to return to the city. The rush for tickets makes it clear that this return is long overdue: The Porsche Arena is expecting 13,000 spectators and sold-out stands at the competitions on November 3 and 4. Only a few tickets are still available. More than 120 extreme athletes from over 20 nations will face off in team and individual events in November, showcasing the highest level of extreme sports.