STIHL has presented the "Supplier of the Year" award to a total of 90 suppliers since 1990. Twenty of those companies have won the award twice, five have been honored three times and one four times.

The assessment criteria for the award were: outstanding accomplishments with respect to quality, technology, innovation, service and price-performance ratio. The "Supplier of the Year" award spotlights those suppliers who have supported the company in its quest for high supply quality, punctual deliveries, flexibility, cooperation and special know-how.

The five award-winning suppliers of 2011 are:

CW BEARING GmbH, Hamburg / Germany
(ball bearings)

J.N. Eberle Federnfabrik GmbH, Schwabmünchen / Germany 
(rewind starters, rewind springs, brake straps)

Johnson Electric International AG, Halver / Germany
(switch applications, electric motors)

mogatec Moderne Gartentechnik GmbH, Drebach / Germany
(garden tools, assemblies)

Nittan Valve Co., Ltd., Tokyo / Japan
(4 mix engine valves)

Record turnover in 2011
The past fiscal year was yet another successful one for the STIHL Group.  Following strong growth in 2010, the company achieved almost 11 percent growth in 2011 to set a new record turnover of EUR 2.62 billion. The German domestic market accounted for 10.6 percent of total sales volume. Unit sales increased worldwide, most particularly in parts of Eastern Europe and the emerging markets of Asia and Latin America. STIHL was able to further consolidate its world market position with above-average growth rates in most of its core products in 2011. Several STIHL sales subsidiaries celebrated anniversaries – Canada (30), Hungary (20) and South Africa (15).

Investments at high level, sound financial structure
Investments were again at a high level and amounted to EUR 183.6 million in 2011 (previous year: EUR 122.7 million). STIHL invested heavily in its German facilities: 45.9 percent of total investments went to the Waiblingen-based founding company near Stuttgart. As in previous years, almost all investments were financed from liquid assets. The equity ratio was increased yet again – from 66.7 percent to 68.2 percent. The number of employees in the Group was up 6.3 percent to 12,026 as of December 31, 2011.

Founding company grows
The German founding company, i.e. the seven production plants in Germany, also profited from the favorable development. ANDREAS STIHL AG & Co. KG increased turnover by 8.5 percent to EUR 869 million. In addition, 105 employees on limited term contracts were given unlimited contracts of employment last year. Dr. Kandziora said: "This is another record in the history of the founding company and we are particularly pleased about it. Since the beginning of 2012 we have been able to yet again offer more temporary staff a  permanent contract." The workforce at the founding company was up 2.2 percent to 3,960 as of December 31, 2011.

Investments of EUR 60 million at German founding company
STIHL is planning two major projects at its corporate headquarters in Waiblingen. A new warehouse for production logistics is to be built next to plant 2 at a cost of more than EUR 40 million. Construction will start at the beginning of 2013 and the facility will be opened in early 2015. The company will also be expanding its engineering center at plant 2 by about 8,500 square meters. This investment, amounting to more than EUR 20 million, will create more capacity for further growth in research and development. It will provide space for offices, laboratories and engineering. Construction is to start at the beginning of 2013, and it is planned to open the building in spring 2014. Executive board chairman Dr. Kandziora views this as a firm indication of the company's commitment to the German location: "We are thus strengthening our corporate headquarters in Germany and preparing ourselves for further worldwide growth."

"Pinnacle of the art of engineering"
The year 2011 was characterized by the introduction of numerous new STIHL developments. "Designing the world's first electronic fuel injection system for a handheld power tool was a pinnacle of STIHL engineering skills," said Dr. Kandziora. The new STIHL TS 500i cut-off machine was the first to be equipped with this new technology. Although fuel consumption has been cut by 15  percent, this world first boasts 20 percent more power than its predecessor. Operation and servicing have also been made easier.

New products – lightweights for professionals and private users
The STIHL MS 150 C-E and MS 150 TC-E are due to be launched soon. They will be available from authorized dealers in May. The STIHL MS 150 C-E impresses with a low weight of just 2.8 kilograms (powerhead, without bar and chain), which makes it the lightest gasoline chain saw in its power class. Yet, this little powerhouse offers craftsmen, farmers and discerning private users the assistance they need in wood construction projects, maintaining trees and shrubs or cutting firewood. The top handle STIHL MS 150 TC-E's even lower weight of only 2.6 kilograms (powerhead) is a boon for users in professional tree service and surgery.

STIHL's entry into a new product segment is marked by the STIHL KG 550, KG 770 and KGA 770 sweepers. They are designed for indoor and outdoor areas such as forecourts, warehouses and paths up to 2,000 square meters. The STIHL KGA 770 offers a particularly high level of operator convenience because both side brooms and the main roller brush are battery powered. STIHL's modular battery system has thus been extended to include another application. VIKING has announced its Series 2 which consists of two new gasoline powered lawn mowers for small to medium-sized areas up to 1,200 square meters. Models MB 248 and MB 248 T are compact units with a cutting width of 46 centimeters. The VIKING MB 248 T is equipped with single-speed wheel drive. "Apart from all these products, there are many other innovations in the pipeline which will be launched on the market in the course of this year," explained Dr. Kandziora.

German market with good growth prospects, STIHL Test Day with 100,000 visitors
STIHL was able to increase its turnover on the German market quite considerably in 2011, i.e. by 9.5 percent. Sales were up in STIHL chain saws and other power tools as well as VIKING lawn mowers and lawn tractors. The cordless products from STIHL and VIKING have exceeded expectations on the home market.

On the whole, the 1st quarter of 2012 has started positively. Despite extreme weather conditions STIHL has been able to maintain the high level of sales achieved on the German market in the first quarter last year. Dr. Kandziora is optimistic about 2012: "This year's growth prospects are outstanding; many new products are now available. We expect a favorable consumer atmosphere in Germany and a steady trend towards the garden as an additional living space." The second nationwide STIHL Test Day on March 31, 2012 was able to repeat the success of last year. More than 100,000 visitors took the opportunity to test new products from STIHL and VIKING. And the servicing dealers were pleased about acquiring many new customers and the resultant sales figures.

Excellent outlook for 2012 and 2013
Executive board chairman Dr. Kandziora reported on a generally successful start to 2012 in the group and was confident about the medium-term outlook: "We expect strong growth worldwide in 2012, but not as high as last year‘s. And I am also optimistic about 2013. Our worldwide sales organization with about 40,000 servicing dealers in more than 160 countries is second to none. I also see exceptional growth potential for next year – providing global economic conditions remain stable and the weather does not upset our plans." Unpredictable risk factors in this respect are the debt crisis, financial and bank crisis, the weakening world economy and also the wildly fluctuating currency exchange rates. STIHL therefore plans cautiously and with the requisite flexibility in its production capacities. "In the past we have always fared well with this strategy," said Dr. Kandziora.

Strong growth and globalisation of the company
In 1960, Hans Peter Stihl joined the company founded by his father Andreas Stihl. When his father passed away in 1973, Hans Peter Stihl became the sole general partner. At that time the company employed 2,500 men and women and had an annual turnover of DM 220 million. Under Stihl's leadership, the family company has grown into an international group with manufacturing plants in Germany, the United States, Brazil, Switzerland, Austria and China. He was also the driving force behind the steady expansion of the product line. Today, the STIHL group achieves an annual sales volume of 2.36 billion euros with some 12,000 employees. It distributes its products in more than 160 countries through a worldwide network of 32 wholly owned sales and marketing subsidiaries, 120 independent importers and some 40,000 servicing dealers.

High responsibility vis-à-vis the workforce
"Responsibility, fairness and enthusiasm are the engine of our business success. Our employees are the company's most valuable capital," says Hans Peter Stihl. It is therefore important to him to fulfil his social responsibility and allow the workforce to participate in the company's success. STIHL is one of the industry's forerunners in this respect. The voluntary fringe benefits go well beyond those collectively agreed with the unions. They range from inexpensive meals in an excellent works canteen to bonuses such as the merit payments and the option to subscribe to shares in the company in the form of participating rights. The company pension scheme has a history of more than 70 years. Members of the staff who have been with the company for 25, 40 and 50 years celebrate their anniversaries with their relatives, superiors, colleagues, the executive board and the Stihl family. In addition, there are traditional festivities for the staff, company anniversaries and functions for pensioners.

Many years in honorary offices
Apart from his business activities Hans Peter Stihl was always very engaged in honorary positions. He was president of the Association of German Chambers of Industry and Commerce (DIHT) from 1988 to 2001. As a staunch proponent of the social market economy he considered good governance as the guiding principle for economic policy activities. Stihl demanded a reduction of subsidies, curtailment of the state's influence, tax system reforms, a demographically sound social security system and privatisation of government functions. During his DIHT presidency, Stihl advocated strong self-management of the economy; he extended the worldwide network of bilateral chambers of commerce considerably.

When Stihl resigned his top post with the DIHT organisation in 2001, he was named honorary president of the Association of German Chambers of Industry and Commerce (DIHK) and the Stuttgart Region Chamber of Industry and Commerce, whose president he had been from 1989 to 2001. From 1973 to 1988 he was a member of the board of the Federation of the Baden Württemberg Metal Industry, and its chairman for the last eight years of that period. In this connection he was also vice president of the Federation of German Employers' Associations in the Metal and Electrical Engineering Industries. Since September 2002 Hans Peter Stihl has represented the Republic of Singapore as Honorary Consul and as Honorary Consul-General since August 2004 in the German states of Baden-Württemberg, Hesse, Rhineland Palatinate and Saarland.

Work on supervisory and advisory boards
In addition to his entrepreneurial and honorary commitments Hans Peter Stihl was also on numerous supervisory boards and served as an adviser. He was, for example, a member of the supervisory boards of IBM Deutschland GmbH, Robert Bosch GmbH,  Südwestbank AG and the IKB Industriebank AG. From June 1995 to mid-2006 Stihl was an associate of Robert Bosch Industrietreuhand KG in Stuttgart. He was  second vice- chairman of the supervisory board of the Landesgirokasse in Stuttgart from 1995 to 1997, after being chairman of its board of trustees for 8 years. Since 1999, Stihl has been a member of the advisory board of the Landesbank Baden-Württemberg. He sat on the general advisory board of the Allianz insurance companies in Munich from 1988 to 2003 and was a member of the central advisory panel of the Deutsche Bank in Frankfurt am Main.

Many awards
In 1982, Hans Peter Stihl was awarded the 1st Class Order of Merit of the Federal Republic of Germany, he received the Grand Order of Merit in 1992 and Grand Order of Merit with Star in 2002. Stihl is a bearer of the Grand Gold Medal of Honour with Star of the Republic of Austria. In 1995, he was awarded the Baden-Württemberg Industry Medal, in 2001 the Order of Merit and, in 2007, the Staufer Medal in Gold, and the Order of Merit of Rhineland Palatinate in 1987. The national association of craftsmen awarded Stihl its Craftsmen Medal in Gold in 2001. The Stuttgart Chamber of Industry and Commerce presented him with the Merkur Prize in 1997, the Stuttgart Regional Forum awarded him the "Regionaut" prize in 2001 (renamed Hans Peter Stihl Prize in 2002) for his services to the Stuttgart region. In 2003, he received the Hanns Martin Schleyer prize for his work in strengthening and promoting the principles of a free society. In 2005, Hans Peter Stihl was inducted into Manager Magazine's Hall of Fame. On November 11, 2009 he and his sister Eva Mayr-Stihl were presented with the Konrad Adenaur Foundation's Social Market Economy Award in St. Paul's church in Frankfurt on the Main.

The building will be erected in front of the existing engineering center (EWZ). It will provide space for offices, laboratories and engineering. Associated areas of activity will be integrated in order to utilize synergy effects. Current space problems will be solved and extra space created to boost research and development capacity. Furthermore, the cafeteria will be transferred to the new building and enlarged.

Hans Peter Stihl, advisory board chairman of STIHL Holding AG & Co. KG, outlined the reasons for the new building: "As we expect further growth in the future, we have to invest in good time in the necessary buildings and plant. The upcoming expansion of capacity is an indication of our confidence in this location and the continuing sucessful development of our subsidiary VIKING."

The extra space is being created at the Tyrolean garden equipment manufacturer is to house additional assembly lines, a new production warehouse, workshops for prototyping and production equipment as well as apprentice training, and offices too. "A total covered area of about 12,000 sq.m will be built, providing useful floor space amounting to some 16,000 sq.m. Inauguration of the extension has been scheduled for autumn 2012," says VIKING general manager Dr. Peter Pretzsch.

VIKING GmbH, which celebrated its 30th anniversary this year, produces and distributes walk-behind lawn mowers, robot mowers, ride-on mowers, aerators, garden shredders and cultivators. Furthermore, the STIHL Group's entire cordless product line is assembled at VIKING. With a workforce of 268, VIKING achieved a turnover of €110 million in 2010. This figure will be exceeed in 2011. Products are distributed and sold exclusively through authorized servicing dealers.

"Outstanding entrepreneur and a fine example of the social market economy at its best"
The Order of Merit was presented by the Deputy Prime Minister and Minister for Finance and Economics of the State of Baden-Württemberg, Dr. Nils Schmid, at the company's headquarters in Waiblingen on September 27. In his laudation, he pointed out: "For several decades, Eva Mayr-Stihl has been involved in the promotion of business, culture and many other areas of our society. This commitment deserves respect and recognition." He stated that as an outstanding entrepreneur, Eva Mayr-Stihl is a fine example of the social market economy at its best. "She has made a substantial contribution to the growth and worldwide success of STIHL, a family-run company, and thus to the creation and safeguarding of thousands of jobs," continued Minister Dr. Schmid.

Decisive contribution to the company's success
Eva Mayr-Stihl has played a significant role in the positive development of the STIHL Group over several decades. She took over the management of STIHL together with her brother, Hans Peter Stihl, in 1973. As one of the company's owners, as the Member of the Executive Board for Finance and Controlling, and as Deputy Chairwoman of the Executive Board, she was highly involved in developing STIHL's employee-oriented corporate culture and worked hard to achieve not only financial stability for the company, but also social company benefits such as employee capital participation and company pensions.

EVA MAYR-STIHL FOUNDATION: services for society as a whole
Together with her husband, Robert Mayr, Eva Mayr-Stihl founded a charitable foundation 25 years ago. The foundation's capital, which has meanwhile risen to 80 million euros, is applied to support various projects, mainly with a cultural, scientific or charitable focus. A large proportion of the projects supported are located in the Stuttgart region or the Rems-Murr district. One prominent example is the sponsorship of the Stihl Gallery in Waiblingen.

Active voluntary work in numerous positions
Eva Mayr-Stihl is involved in a wide range of voluntary activities. In 2001 for example, she was appointed upon the proposal of Germany's Federal Minister for Economics and Technology to the five-member Quality Control Commission of the German Chamber of Public Accountants. From 1994 until 2002, she acted as the internal auditor of Südwestmetall, a regional employers' association. She held the same position at Gesamtmetall, a nationwide employers' association, and as of 2000 also at the Confederation of German Employers' Associations. She was also a member of the boards of the Baden-Württemberg Association of Metalworker Employers (VMI) and of Südwestmetall. In 1997, the Stuttgart branch of the Chamber of Industry and Commerce appointed her to its steering committee, in which she was active until 2004.

Unit sales up, more employees
STIHL achieved above-average growth in unit sales of chain saws and all power tool segments. VIKING also recorded double-digit growth in unit sales. On the whole, relatively strong growth was experienced in the BRIC countries. In the case of turnover growth, the negative effect of the relatively weak U.S. dollar was counterbalanced to a considerable extent by the strength of other currencies such as the Brazilian real, Australian dollar and Swiss franc. An increase in the number of employees was a direct result of the higher production output: As of August 31, 2011 the company's workforce increased to 11,901, which is 7.1 percent more than the previous year.

German founding company grows, a promise to apprentices
Turnover of the German founding company, ANDREAS STIHL AG & Co. KG, showed stronger growth than the group as a whole. It was up 12.9 percent to EUR 570 million in the period between January and the end of August. Responding to high growth in production, the founding company gave permanent contracts of employment to 100 limited-term employees. "We are pleased that we have been able to offer 100 men and women, who were previously on limited-term contracts, a permanent position at STIHL as members of the regular staff," said Dr. Kandziora. The workforce at the founding company was up 5.9 percent to 4,013 as of August 31, 2011. Of this total, 3,004 are employed in Waiblingen, 321 in Ludwigsburg, 622 in Prüm-Weinsheim and 66 in Wiechs am Randen. From now until October, 60 young people will be starting their training at the STIHL founding company, where a total of 210 apprentices and trainees are working. All interested and suitable apprentices and trainees who had completed their training in 2011 were offered a permanent contract of employment. Moreover, STIHL's chairman made a promise for 2012: "Next year, we will again take on all interested and suitable apprentices and trainees who have successfully completed their training."

A world first: Electronic fuel injection
STIHL has presented a world first at the start of the 2011/2012 season in the form of the STIHL TS 500i cut-off machine. It is not only the first product of its kind to feature electronic fuel injection but the first handheld power tool ever to make use of this futuristic engine technology. The STIHL computer-mapped fuel injection system continuously and precisely determines fuel mixture, injected quantity, injection and ignition timing. Dr. Kandziora is a firm believer in the new technology: "It ensures really easy starts and optimum engine power at all times with excellent running behavior and throttle response as well as greater fuel economy and lower emissions. With the STIHL TS 500i even the toughest of cutting operations will be performed more easily and efficiently than ever before.  As it has no carburetor, this highly innovative power pack is characterized by much more power in the same space and thus has an exceptional power to weight ratio."

In the chain saw segment, STIHL presented six new products for the new season. The compact, lightweight MS 150 C-E chain saw scales only 2.8 kilograms and is suitable for the crafts and trades, fruit growers and gardeners as well as demanding private users for woodworking projects, tending trellis fruit trees or cutting firewood. The top handle version, the STIHL MS 150 TC-E, simplifies cutting for professional tree surgeons. In addition to the gasoline chain saws, the company is launching four new electric models: The STIHL MSE 150 C-Q and MSE 170 C-Q have been developed for serious DIY users for jobs around the house and garden. The more powerful models in the same series, i.e. the MSE 190 C and MSE 210 C, are designed to meet the demands of professionals in construction and finishing, carpenters' shops, the refurbishment trade and in agricul-ture. The  STIHL Laser 2-in-1 provides chain saw users with a practical aid which – mounted to the saw's handlebar – helps determine the direction of fall more accurately when felling and simplifies measuring log lengths when cutting fuelwood. It is also a world first.  The STIHL FS 490 C-EM, FS 510 C-EM and FS 560 C-EM are the next generation of brushcutters. They fulfil the requirements of users in landscaping and forest maintenance. The new STIHL HSE 42 and HSE 52 electric hedge trimmers are great aids in private gardens.

German market on growth curve
STIHL is continuing to experience satisfactory turnover growth on the German market following its record turnover in 2010. At the end of August the turnover in Germany was well above that of the same period last year. The demand for the new STIHL cordless products has outstripped expectations. But there has also been substantial growth in sales of gasoline and corded electric machines. Dr. Kandziora also sees a favorable trend in sales of VIKING mowers and lawn tractors: "The premium strategy comes up to the expectations of our customers with respect to quality, ergonomics and design." He is generally optimistic as far as further business growth on the German market is concerned: "I expect pleasing turnover growth on the domestic market for the year as a whole as a result of new product launches and promotional activities."

"STIHL's four angels"
The STIHL MS 160 C-BQ cordless chain saw is the fourth STIHL cordless product to receive the Blue Angel environment award for particularly quiet, low-pollution garden tools which are therefore environment friendly and reduce health risks, especially in noise-sensitive areas. STIHL's FSA 65 cordless line trimmer and HSA 65 and HSA 85 cordless hedge trimmers already received the Blue Angel award some time ago.

Good prospects despite economic slowdown
In Dr. Kandziora's opinion the world economic upswing has lost momentum. As far as STIHL's own products for landscaping and garden maintenance, as well as the forestry and construction industries are concerned, he sees considerable medium to long-term growth potential in unit sales. He predicts a distinct rise in demand in the emerging markets in the long term. "The STIHL Group will exceed the EUR 2.5 billion mark this year. The consumer segment with premium quality products is becoming increasingly important. Our cordless products enjoy growing popularity among customers who attach special importance to product convenience," said Dr. Kandziora. "We are boosting our capacities for further increases in production by investing considerable sums in our worldwide manufacturing network."

An 85-year success story
Even company founder Andreas Stihl was convinced that a customer-oriented sales system would be a key factor for the future success of his business and said: "A chain saw is only as good as its service." Only two years after the company was founded (1926), STIHL opened a STIHL sales office in North Germany. Andreas Stihl was a pioneer of globalization. It was not long before the success of his strategy became apparent – the first gasoline chain saws were soon sold to neighboring European countries. STIHL started exporting chain saws to America in 1930, and to Russia a year later. Sales companies were set up in the world's major markets in the years that followed and that strategy has continued up to the present day. An important aspect of the company's philosophy is to sell exclusively through servicing dealers – and this has proven successful: STIHL has been the biggest selling chain saw brand ever since 1971.

The early 1970s saw the establishment of an international manufacturing network with plants in the U.S.A., Brazil, Switzerland, Austria and China. As the company's developments resulted in technical innovations in many products, there are now well over one thousand STIHL patents.

Chain saws currently account for half the company's unit sales. The other half comprises outdoor power tools such as line trimmers, brushcutters, pole pruners, hedge trimmers, blowers, sprayers, cut-off machines, earth augers, pressure washers, wet and dry vacuum cleaners and sweepers. Garden equipment manufacturer VIKING, based in Austria, has been part of the STIHL group since 1992 and rounds off the product line with its walk-behind lawn mowers, robot mowers, ride-on mowers, garden shredders and cultivators.

The traditional Swabian company now has a workforce of more than 11,000 and achieves a turnover of over €2.3 billion. STIHL is represented around the world by 32 company-owned sales and distribution subsidiaries and a closely knit network of more than 120 importers. Some 38,000 authorized servicing dealers all over the world offer STIHL customers professional advice and comprehensive service.

"STIHL remains a family-owned company."
STIHL will maintain the character of a family-owned company and continue to vouch for the high quality behind the "Made by STIHL" label. After his 80th birthday on June 30 next year, Hans Peter Stihl will resign chairmanship of the advisory board. His son, Dr. Nikolas Stihl, will then succeed him in the most important decision-making organ in the STIHL group. Hans Peter Stihl explained: "Our goal is to ensure that STIHL remains a company owned by the descendants of our founder Andreas Stihl. Operative management of the company will continue to be in the hands of the non-family executive board – under the time-proven chairmanship of Dr. Kandziora. I will remain general partner of STIHL Holding."

Heribert Benteler has been with the STIHL sales subsidiary since 1992 and is currently head of Marketing and Sales. In his position as general manager of the subsidiary with a staff of 260 he will be responsible for the largest market in Europe. STIHL achieved a turnover of about €250 million in Germany last year. Further growth is planned for 2011.

The horrendous earthquake that hit Japan on March 11 and its aftermath triggered a wave of sympathy among the STIHL workforce. The staff at all plants of the German founding company and the Swiss chain manufacturing facilities contributed more than EUR 25,000 in response to an appeal from the general works council. "The money will be transferred to the Malteser relief organization for the specific purpose of rebuilding a badly damaged children's home in North Japan. It is run by Sister Caelina Mauer and her staff, who look after 60 children and young people," says works council chairman Luigi Colosi.

In early April, the Eva Mayr-Stihl Foundation donated EUR 40,000 of immediate aid to the Japanese Ashinaga organization for the children affected by the disaster. Founder Eva Mayr-Stihl explains: "We have given the money directly to a respected Japanese organization, since it is in the best position to assess the situation locally and, furthermore, administration costs are kept low in this way."
Ashinaga is one of the oldest and best known humanitarian organizations in Japan. Named after the American novel ‘Daddy Long Legs' published in 1912, the non-profit organization, established more than 40 years ago, has been providing financial and emotional support to children who have lost their parents due to illness, accidents or disasters.

(Voucher copy requested.)

Caption:

Picture 1: Sr. Caelina Mauer amongst her protégés.

Picture 2: Sr. Caelina Mauer shows damages.

Copyright Photos: Kazushi Abe

STIHL has presented the "Supplier of the Year" award to a total of 86 suppliers since 1990. Twentyone of those companies have won the award twice, four have been honored three times and one four times.

The assessment criteria for the award were: outstanding accomplishments with respect to quality, technology, innovation, service and price-performance ratio. The "Supplier of the Year" award spotlights those suppliers who have supported the company in its quest for high supply quality, punctual deliveries, flexibility, cooperation and special know-how.

The five award-winning suppliers of 2010 are:

- Domel, d.d., Železniki / Slovenia (electric engines)
- Kaaz Corporation, Okayama / Japan (Gearboxes)
- Schaeffler Technologies GmbH & Co. KG, Herzogenaurach / Germany (Bearings)
- SONAX GmbH, Neuburg / Germany (Cleaning agents)
- Staudigl-Druck GmbH & Co. KG, Donauwörth / Germany (Printed publications)

(Voucher copy requested.)

Caption:

Picture 1: Front row (from left): Manfred Hoffmann (SONAX GmbH), Achim Schreiber (Staudigl-Druck GmbH & Co. KG), Masakazu Katsuya (KAAZ Corporation), Dr. Jožica Rejec (Domel, d.d.), Hiroaki Tao (KAAZ Corporation), Stephanie Zahner (Schaeffler Technologies GmbH & Co. KG).
Second row (from left): Dr. Bertram Kandziora (STIHL Vorstandsvorsitzender), Dr. Boris Benedičič (Domel, d.d.), Peter Mehrer (Staudigl-Druck GmbH & Co. KG), Thomas Werner (Schaeffler Technologies GmbH & Co. KG), Johannes Artner (SONAX GmbH).
Back row: Robert Heilmann and Werner Hammer (both Schaeffler Technologies GmbH & Co. KG).

Picture 2: First, STIHL employees demonstrate the newest products.

Picture 3: Later, the suppliers get the chance to see for themselves the high quality of the products they contributed to. 

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

World market position further consolidated
"STIHL gasoline chainsaw sales grew faster than international markets as a whole – that enabled us to further consolidate our world market position," explained Dr. Kandziora. Growth in sales of the other gasoline power tools was boosted by a generally better economic environment and favorable weather conditions in many regions. All in all, above-average increases in unit sales were recorded in North and South America, Asia and several parts of Eastern Europe. The share of turnover achieved outside Germany was 89.3 percent.

More jobs, liquidity up
The greatest challenge was the strong growth in production, which necessitated a fast and flexible response from all locations. The number of employees in the Group increased 3.9 percent to 11,310 as of December 31, 2010. The cost cutting programs launched in 2009 to counter the worldwide economic crisis were systematically continued in 2010. This resulted in a further increase in liquidity and enabled all Group investments to be financed from liquid assets.

Electronic engineering main focus of development activities
The main focus of development activities in 2010 was again on electronic engineering – with the aim of further improving customer benefits. Following the successful launch of the cordless hedge trimmers, the line of cordless power tools was expanded with the addition of two grass trimmers, a blower, two VIKING lawnmowers and STIHL's first battery-powered chainsaw. The electronic engine control system for gasoline-powered products was adapted for use in a STIHL brushcutter and upgraded with important functions for chainsaws. STIHL developed the first electronic water-feed control for cut-off machines.

Future-oriented new products
All the cordless power tools launched up to now have been very well received by customers. A number of new products will also be introduced on the market this spring. They include the STIHL HS 46 and HS 46 C-E gasoline hedge trimmers for homeowners and the HS 56 C-E for professionals in horticulture and landscaping, land maintenance and agriculture. Weighing only 4 kilograms, the STIHL HS 46 is one of the lightest gasoline hedge trimmers in the world. The line of gasoline chainsaws has been broadened recently with the STIHL MS 241 C-M. It is the first chainsaw to come standard with M-Tronic. This fully electronic engine management system ensures precise control of ignition timing and fuel metering to obtain maximum engine power in all operating conditions. The lightest professional chainsaw in the STIHL line is the new STIHL MS 201, which scales only 3.9 kilograms (powerhead without guide bar and chain). A special top handle version of this lightweight, the MS 201 T, is available for professional tree surgery. Convincing features of the new STIHL FS 240 C-E and FS 260 C-E brushcutters are a simplified starting procedure and improved ergonomics. Like the above-mentioned gasoline chainsaws, they are powered by STIHL's particularly fuel efficient 2-MIX engine.

VIKING's line of ride-on mowers was enlarged with the introduction of the new VIKING MR 4082, which recently won the internationally renowned "red dot product design award 2011". Assessment criteria for the "red dot award" include aspects such as degree of innovation, functionality, ergonomics, longevity and ecological compatibility. The highly maneuverable ride-on mower has a turning circle of only 65 centimeters and is designed to meet the demands of hobby gardeners. It is suitable for lawns up to about 4,000 square meters.

Founding company grows 18.5 percent, employees participate in company's success
The German founding company, i.e. the seven production plants in Germany, also profited from the worldwide recovery. Turnover climbed 18.5 percent to EUR 801.2 million. The export share was up slightly to 87.6 percent. Investments dipped EUR 1.5 million to EUR 48.1 million. Considerable funds went into research and development in Waiblingen for expansion of the product line.

The workforce at the founding company increased 5.1 percent to 3,874 last year. Of this total 2,925 were employed in Waiblingen, 590 in Prüm Weinsheim, 301 in Ludwigsburg and 58 in Wiechs am Randen. Employees will receive 10 percent interest on their participating rights for 2010. In addition, all permanent staff members will receive a merit bonus amounting to 50 percent of one month's salary, the minimum bonus being EUR 1350. The average length of service with the company has risen slightly and is now 15.8 years. The executive board chairman was pleased to note that 70 percent of the work-force took part in the "ideeplus" suggestion scheme: "We achieved record savings of EUR 1.9 million and rewarded our resourceful staff with bonuses totaling more than EUR 400,000."

Employee galas and celebrations with customers in STIHL anniversary year
STIHL was founded by Andreas Stihl as a one-man business in 1926 and has since grown into an international group of companies. Dr. Kandziora is looking forward to the celebrations with employees and customers: "To show our appreciation for the great commitment of our staff we are organizing a grand company fête in the grounds of Plant 2 in Waiblingen-Neustadt on July 16." All employees and pensioners from Waiblingen, Ludwigsburg and Wiechs am Randen are invited together with their spouses, partners and children. The anniversary celebration with international customers will be held in October when some 220 guests from 75 countries are expected to attend. There are more company anniversaries and staff fêtes on the agenda in 2011: The plant in Wiechs am Randen will be celebrating its 50th anniversary in September, while STIHL's magnesium die casting facility in Prüm-Weinsheim celebrates its 40th anniversary in June.

German market growing steadily
STIHL's turnover on the German market increased by 2.3% in 2010, following growth of 4% in crisis year 2009. At the end of the first quarter this year, turnover in Germany is well above that of the same period last year. "A stunning array of new products from STIHL and VIKING, excellent advertising and sales promotion activities and favorable weather conditions have all contributed to the positive development," said executive board chairman Dr. Kandziora. Customers all over Germany were recently able to test numerous new products from STIHL and VIKING at the first nationwide STIHL Test Day on April 9, which was deemed a great success by both customers and participating servicing dealers.

"I am sure that we will continue to grow in the German market. People want to feel good in their gardens, which are becoming increasingly like a second living room. And custom-ers particularly appreciate quality products from STIHL and VIKING for garden care," said Dr. Kandziora.

Chairman is optimistic for 2011
Compared to the competition, STIHL has come out of the crisis stronger than before. Executive board chairman Dr. Kandziora sees this as the result of a successful company strategy: "We reduced costs during the crisis but did not save on important investments in products, future technologies and markets. On the contrary – we actually increased our development activities in the crisis."

Dr. Kandziora is optimistic about the future and plans further growth for the current year, albeit at a slower rate than 2010. He expects a strong world economy for the time being. The rising cost of fabricated products could have a detrimental impact in this respect. "2011 has started very well. Nevertheless we must observe developments in the markets very closely and remain flexible."

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At its meeting on March 30, 2011 the Supervisory Board of STIHL AG reached a number of decisions on filling future executive board posts.

The Chairman of the Executive Board of STIHL AG, Dr. Bertram Kandziora, has been reappointed for a further five-year term as of February 1, 2012. Dr. Kandziora has been a member of the board since February 2002 and is also responsible for Production and Materials. Board members Dr. Klaus Detlefsen (Finance and Controlling) and Jürgen Steinhauser (Marketing and Sales) will be leaving the company for age reasons and when their terms of office come to an end on April 30, 2012 and June 30, 2012. Their successors are business economist Karl Angler (54) and industrial engineer Norbert Pick (53). They have both occupied executive positions in the STIHL Group for about a decade. The future executive board member, Finance and Controlling, Karl Angler, has been Vice President of the U.S. subsidiary STIHL Inc. in Virginia Beach/U.S.A. since 2002. He will be coming to Waiblingen on April 1, 2012 and take over from Dr. Detlefsen on May 1, 2012. Norbert Pick is General Manager of STIHL Vertriebszentrale AG & Co. KG in Dieburg and will succeed Jürgen Steinhauser as executive board member, Marketing and Sales, in Waiblingen on July 1, 2012.

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Caption:

Picture 1: Nobert Pick (left) and Karl Angler

Picture 2: Karl Angler

Picture 3: Nobert Pick.

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

Last week the Darmstadt Regional Council destroyed 4,450 cheap chainsaws which had been found to have serious safety defects. Among other things, the chain braking time was too long, the front hand guard and the handle broke too easily. Other defects found were the inadequate strength of the front handle, missing rating plates and emissions outside the statutory limits. In addition, there were no valid type approval test certificates for the saws, which chainsaws must have to comply with the Machinery Directive. The saws did not there-fore conform to several requirements of the legal regulations applicable throughout Europe and thus pose a real risk to users.

The dangerous saws with the fantasy names "PowerHaus" and "KrafTWelle" were sold by door-to-door salesmen, at flea markets or on the Internet. They were impounded during a search of a company in South Hesse. About half of them had a colour scheme deceptively similar to that of STIHL products and thus infringed the STIHL colour trademark which is protected throughout the EU. In October 2010, the Darmstadt Regional Council, in its capacity as the responsible market surveillance authority, issued an order prohibiting placing such or similar chainsaws on the market. Furthermore, distributors have been ordered to carry out public recalls and several warnings of penalty payments were given.

Therefore, for the first time ever in the case of chainsaws, a European market surveillance authority has implemented valid EU law on such a scale with visible and notice-able consequences for the defendant.

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Caption:

Picture 1: Chainsaws worth €200,000 were destroyed during this operation.

Picture 2: Darmstadt Regional Council destroys dangerous cheap saws from China 4,450 deficient chainsaws shredded to 20 tons of scrap.

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