• New records across four areas: revenue, sales, production, and headcount
• STIHL strengthens international production alliance
• Countless new products in the battery-operated and gasoline segment for professionals and home users

The STIHL Group achieved record-breaking revenue of 5.06 billion euros in fiscal year 2021, equating to a year-on-year increase of 10.4 percent. Excluding currency effects, revenue would have increased by 12.3 percent. The Group, whose headquarters are located in Waiblingen, Germany, generated 90 percent of its sales revenue abroad. “We exceeded our own expectations in 2021,” said Michael Traub, the Chairman of the Executive Board of STIHL, at the press conference presenting the company’s annual results on April 26, 2022.

“Not only did we achieve new records in terms of sales and production, we also exceeded the 5-billion-euro mark in revenue for the first time in our 96-year history, despite enormously challenging circumstances.” Even though global disruption to supply chains and severe shortages in materials, capacity, and personnel significantly impacted the market supply situation, STIHL was still able to keep its production running at full speed thanks to proactive planning, allowing it to continue providing its customers with STIHL products in the best possible way. “The new records we achieved in revenue, sales, and production in 2021 are a testament to the outstanding performance by the entire STIHL team and the huge amount of dedication and flexibility shown by our workforce,” Traub added. “They have made the impossible possible.” The Group’s headcount is also at a record level. As of Dec. 31, 2021, the STIHL Group had 20,094 employees worldwide, which equates to growth of 10.4 percent compared to the prior year.

Growth across all markets — gardening products in particularly high demand

The gardening and DIY trend — with customers aiming to create a feeling of well-being at home and purchasing high-end gardening products — continued in 2021. Many customers, particularly in Western Europe and North America, have been exploring entirely new approaches to beautifying their green spaces. As a result, demand for high-quality and user-friendly products that further increase the feel- good factor in people’s homes and gardens was particularly strong. Countless product innovations and favorable weather conditions bolstered sales elsewhere in the world too. Online sales also saw significant growth. Demand for consumer and professional products increased across all regions. The trend toward battery-operated tools continued overall in the past year, particularly in the consumer goods segment in western industrialized countries. However, demand among professional users for high-performance battery-operated tools also increased. Demand for STIHL’s gasoline-powered products remained brisk as well, with sales also increasing year on year in this segment. “These figures clearly show that our customers continue to regard both segments as relevant and important,” Traub said. “That’s why we will continue to invest a great deal in the forward-looking battery-operated segment without compromising on our gasoline-powered tool business.”

In many markets, STIHL would have been able to sell more tools under better global supply chain conditions. Production at all locations around the world was at full pace to match strong global demand. Traub: “We are doing everything in our power to ensure that our customers continue to be supplied with our products. However, it is simply not possible to reliably predict product availability in light of current events. Problems caused by existing supply chain tension will only be exacerbated by the conflict in Ukraine.”

STIHL makes significant investments in production alliance, manufactures record quantities

The STIHL Group invested a total of 331 million euros in 2021, 16.9 percent more than in the prior year. Of this amount, 91.8 percent was attributable to international production companies. “The effects of the coronavirus pandemic have once again shown how important flexible and resilient production and logistics chains are,” Traub said. “In 2021, we made unscheduled investments of several hundred million euros in our global production sites for the procurement of additional machinery and systems to make the international STIHL production alliance even more responsive moving forward and to meet persistently high global demand for products.” The largest investments were in cylinder production in Brazil, three-part bar production in the U.S., chain production in Switzerland, and the production of crankshafts and plastic in Germany. Production operated 24 hours a day at many of the Group’s locations.

The STIHL founding company in Germany recorded its second-highest annual production volume since it was established in 1926.

STIHL Inc., in Virginia Beach, USA, raised its powerhead production by 19 percent compared to the prior year. By stepping up employee training, the location was able to increase its flexibility in order to respond quickly to changes in the supply chain and in sales.

STIHL China celebrated its 25 millionth product at the Qingdao location since its foundation in 2006. Thanks to measures to enhance efficiency, the Chinese production location was able to boost its output by almost 50 percent compared to 2019.

STIHL Brazil produced its 100 millionth cylinder in 2021. Since its foundation in 1996, the manufacturing location in São Leopoldo has expanded its production capacity by a considerable margin.

The new plastic production facility is set to go online at STIHL Tirol in the summer of 2022, which will significantly increase vertical integration at this location. The STIHL Group manufactures the majority of its battery-operated products (including the STIHL MSA 300, the most powerful battery-powered chainsaw in the market) at STIHL Tirol.

Production at the STIHL chain plant in Switzerland was increased by 20 percent in 2021, resulting in a new production record. The company has also invested considerably in the expansion of its machinery. A particular focus was placed on specialty machinery, which is developed and manufactured in-house and is used in a variety of manufacturing processes and chain assembly.

ZAMA, a wholly owned STIHL Group subsidiary, expanded its parts range and has been manufacturing both membrane carburetors and cable harnesses since 2021. Cable harness production is an investment in the future, as they are required in gasoline-powered products and in all battery-operated tools, as well as in the iMOW robotic mower.

Revenue up in Germany despite supply tension

STIHL saw both sales and revenue increase in Germany in 2021. Demand among professional users from forestry, construction, horticulture, and landscaping was just as high as demand among private customers. The trend toward spending more time at home and investing in home and garden maintenance continued in this area. The STIHL online store also recorded an increase in business in Germany. In the past year, strong product demand was met by ongoing tension on supply markets, which intensified further in the first quarter of 2022 due to the geopolitical situation. As a result, STIHL authorized dealers and customers alike were forced to wait — in some cases for a significant amount of time — for ordered products.

STIHL founding company in Germany generates record revenue and shapes transformation ANDREAS STIHL AG & Co. KG, the German founding company, continued to grow in 2021, generating record- breaking revenue of 1.59 billion euros. This figure equates to revenue growth of 15.2 percent compared to the prior year. The number of employees climbed by 9.2 percent year on year to 5,748 as of Dec. 31, 2021. Of this amount, 4,094 worked in Waiblingen, 427 in Fellbach, 254 in Ludwigsburg, 896 in Weinsheim, and 77 in Wiechs am Randen.

In the midst of the coronavirus pandemic, STIHL took an important step in concluding an agreement to safeguard jobs and operations until 2025. The agreement guarantees continued employment at the founding company, financial support for advanced and further training and qualification, and an investment of 200 million euros in buildings and machinery. “STIHL is currently transforming itself from mechanical engineering company to a mechatronic and software specialist,” Traub said. “The agreement to safeguard jobs and operations is a vital part of ensuring that we will be able to shape and realize change and innovation over the next few years.” So that it can play an active role in shaping this transformation, STIHL continues to invest in IT infrastructure, concentrated at the founding company, as well as in research and development. The company is also focusing its attention on forward looking business areas such as batteries, electronics, robotics, artificial intelligence, and e-commerce. The STIHL founding company is currently looking to fill more than 200 positions, including jobs for experts in electrical engineering, robotics, software engineering,

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