Stuttgart Stihl boss Michael Traub, who has been in office for a good year, presents himself with a checkered lumberjack shirt and protective clothing befitting his status. He presents the latest cordless chainsaw from Stihl in action and cuts off a few slices of a small tree trunk. “Weighs only four kilos and is super handy,” praises the company boss.
The performance in front of the Liederhalle in the middle of Stuttgart should be as authentic and relaxed as possible. A year ago, his first live appearance took place as a rather sober web conference. Even the pouring rain didn’t stop Traub from taking part. He just pushed his slightly fogged-up goggles up over his forehead.
“We want to be a double technology leader, with battery and combustion tools,” emphasizes the ex-Bosch manager. One thing is clear: the future at Stihl should also be electric. Every fifth device is already running on a battery – by 2035 it should be 80 percent. The Swabians want to fight for a leading position in the battery market.
That is why they are investing the largest part of the budget of more than 400 million euros in the development and production of innovative, high-performance and long-lasting battery products.
At the same time, Stihl continues to invest in combustion engines that can be operated with e-fuels. For Stihl, this is a sensible way of operating devices such as chain saws in the future in a CO2-neutral manner. “It will be some time before there are sockets in the forest,” says Traub. In the USA and Europe, the transformation to cordless tools will be faster than in Latin America or Southeast Asia.
E-fuels from Porsche’s plant in Chile
Head of development Anke Kleinschmit has already brought a liter of the sustainably produced fuel, which is still expensive today, for demonstration purposes. It comes from Porsche’s new e-fuel production facility in Chile. “We received it free of charge for testing purposes,” says Kleinschmit.
According to the company, all Stihl devices with combustion engines can already be operated with alternative and environmentally friendly fuels. From 2027, e-fuels are to be used extensively in Stihl devices in order to operate the devices almost CO2-neutrally. During the presentation, Kleinschmit took the large tree saw and, with a deafening noise, cut off three slices of a tree trunk with a diameter of 40 centimeters.
The head of development is no longer the only woman in a key position on the board.
(Photo: Stihl)
The picture is symbolic: At Stihl, more and more women are also taking on the tough departments on the board. The former Mercedes manager has not been alone among men for a few months. The new CFO Ingrid Jägering, 57, came from the crisis-ridden auto supplier Leoni. Born in Südlohn, she previously held management positions at Osram, MAN Diesel, Brose and Siemens.
The trio is completed by the new head of sales, Sarah Gewert. The 43-year-old economist has been with the company since 2014 as Head of Marketing Communication.
Less sales, higher prices
Stihl is probably the only mechanical engineering company of this size in Germany with an equal number of three women and three men on the board. “It wasn’t a requirement, but it made so much sense. The quality was decisive,” emphasizes Traub. In any case, the now 91-year-old patriarch and personally liable partner Hans Peter Stihl has taken on a pioneering role in the industry with his appointment to his operational management.
The CFO came from the cable specialist Leoni.
(Photo: Stihl)
In the operative business, the wind has shifted somewhat. The boom period during the pandemic, when customers had to forego holidays and bought garden tools in bulk, is over. “The cocooning effect is gone. People are spending more money on other things again,” says Traub.
This was reflected in the sales figures, which were declining for the first time in a long time. “But we were able to raise the prices in the past two years,” emphasizes Traub. Further reasons were therefore a stronger demand for expensive professional devices.
The manager becomes the new head of sales.
(Photo: Stihl)
As a result, the chainsaw and garden tool manufacturer was able to increase sales significantly despite the decline in sales. Revenue increased year-on-year by 8.6 percent to EUR 5.5 billion. However, a large proportion of the growth is due to currency effects. Stihl sells a lot in dollars, so if the euro falls in value, that helps sales. Without these effects, growth would have been 3.1 percent. Reasons for the restrained consumer behavior are also the weak economy and declining purchasing power.
According to Stihl, the world market leader
Traditionally, the Swabian family company does not provide any specific information on profits. But this is satisfactory, assured Stihl CEO Michael Traub. However, the equity ratio fell from a peak of 68 to 62 percent. The reason given by the new head of finance was “changes in the shareholder shares after the death of Hans Peter Stihl’s sister Eva Mayr-Stihl a year ago”. However, the remaining three families continue to hold 86 percent of the shares in equal shares.
Overall, sales in 2022 were still at a high level. Compared to the high-growth previous year, however, there was a slight decline, for example in the markets of Western Europe and North America. Traub also did not name specific sales figures.
According to Stihl, it is the world market leader for chainsaws and has plants in Europe, Asia and South America. A good 90 percent of sales are generated outside of Germany. At the end of 2022, the group employed a good 20,550 people worldwide, 2.3 percent more than in the previous year.
Growth is expected to pick up speed again this year. However, the Stihl boss held back with forecasts in view of the volatile world situation. Traub does not want to do without the important Chinese market.
The plant in China, which has been running since 2006, is an integral part of the global company network and will remain so. In addition to the headquarters in Waiblingen near Stuttgart, STIHL is building another plant for cordless tools in Oradea, Romania. Battery products are currently manufactured at locations in Austria and the USA. With Romania, a cost-effective location has now been added.
More: “Amateurism is a weak word” – Nikolas Stihl severely criticizes the implementation of the energy transition.