Stihl at the cutting edge

Germany's electrical appliances producer Stihl logged record revenues last year, the group announced on Monday. It logged a 10.8-percent increase in sales year-on-year, with revenues totaling 2.62 billion euros ($3.44 billion).

"We were able to ensure above-average sales increases in 2011 and thus strengthen our global market position," Chief Executive Bertram Kandziora said in a statement in the western German town of Waiblingen where Stihl has its headquarters. "Every third chainsaw sold around the world comes from our company," Kandziora added.

Traditionally, Stihl does not reveal its annual profits, but indicated that they matched the positive sales picture. Apart from chainsaws, the company also managed to sell more of its other electrical appliances and tools, including angle grinders and sweepers.

Only ten percent of revenues were achieved in Stihl's home market, Germany, with sales skyrocketing in eastern Europe and emerging nations in Asia and Latin America.

Heavy investments continue

Stihl's management said the prospects for further growth were excellent. "For the current year we expect another increase in revenues worldwide, if not at the pace seen in 2011," CEO Bertram Kandziora predicted.

The firm plans to invest another 60 million euros over the next couple of years, after spending 136.6 million euros on its facilities worldwide in 2011. Among other things, Stihl will be pumping millions in a new storage facility in Waiblingen and the extension of its product development unit there.

Stihl currently employs 12,000 people worldwide. Last year, its workforce based in Germany rose by 2.2 percent to 3,960. The company said it was certain to hire more people in the course of this year as order books continued to be full.

hg/mll (dpa, dapd)