Company says production at high level despite bottlenecks

In a recent online presentation STIHL Group's senior management have said the company has continued on its growth course from the past financial year and generated revenue of 3.51 billion euros in the period between January and August 2021.

This represents growth of 11.7% compared to the same period last year. The exchange rate adjusted increase in revenue amounts to 15.4%.

As at 31 August 2021, the STIHL Group employed 19,523 people, 7.3 percent more than at the end of 2020.

“Sales and revenue in all product groups were significantly up on the previous year - and higher than forecast," said the Chairman of STIHL’s Executive Board Dr Bertram Kandziora at the company press conference, which took place as part of the International STIHL Media Day on 15 September.

"The high level of commitment, the flexibility of our workforce and forward-looking planning in production, sales and logistics have made this possible – even though shortages of raw materials, a lack of production capacity at suppliers and at STIHL as well as limited transport capacity have led to significant disruptions in the supply chains. Without these bottlenecks, we would have been able to produce and sell even more products."

Dr Kandziora was also optimistic about the rest of the financial year, saying, “There is still strong demand for STIHL products. We are producing around the world at a high level to be able to supply our customers.”

The company said they had seen international sales growth in both petrol and cordless products. Dr Kandziora said, “We are observing a strong trend toward cordless power tools this year. It’s positive to see that we also recorded sales growth in the double-digit percentage range for products with petrol and electric drives. This development shows that STIHL is still strong in the petrol segment, but is also becoming an increasingly strong player in the cordless market.”

However, the company did address that ongoing high demand for their products also presents major challenges. STIHL said they are still struggling with disrupted supply chains around the world and significant supply bottlenecks for raw materials and components.

“Unfortunately, it is due to these external factors that we have been unable to fully meet the demand for STIHL power tools in some places. Global production is currently running at full speed to make up for the shortfalls and to better provide for our customers,” said Dr Kandziora.

“All employees are playing a big part in helping us tackle these huge challenges – doing extra shifts and showing tremendous flexibility and personal commitment. At present, we are generating record results in production, logistics and sales. It is only thanks to the enormous commitment of our workforce that our successful business development is possible."

You can read a full interview with STIHL GB's new md, Kay Green, in the forthcoming edition of Service Dealer magazine.

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