Profit grew similarly to turnover in 2011, said Ioan Mezei, general manager of Andreas Stihl Motounelte. According to Finance Ministry data, the company reported net profit of RON14.2 million in 2010.
Stihl is running a program similar to the government’s car scrappage scheme, offering discounts to new power tools in exchange for used tools. Last year, 30 tons of old tools were turned in through this program and melted down thanks to Stihl’s partnerships with recycling firms.
Chainsaws sold very well through the program, making up more than 60% of sales, and the company expects growth on other segments, like brushcutters. Andreas Stihl Motounelte also offers electrical products, cut off machines and vacuum cleaners. Last year, it sold more than 50,000 units.
Some 60-70% of sales are to clients in rural areas, whether individuals or landscaping companies.
Andreas Stihl Motounelte has a network of 220 distributors, which it is interested in expanding, but not through DIY stores. “Our strategy is not compatible with this channel for the time being,” said Mezei. The company’s distributors are small companies that also provide advice and specialized services.
“Every year, our investments are around EUR1 million, directed into the distribution network and equipment,” said Mezei.
He estimates the power tool market is worth EUR100-120 million. One of Stihl’s main competitors is Husqvarna.
Stihl is a family business, set up in 1926 by Andreas Stihl. In 2011, the group’s turnover was EUR2.6 billion. The group now has more than 12,000 employees, six factories and operates in 160 countries. In Romania, the company has 21 staff and around 1,000 people work in the distribution network. (EUR1=RON4.4796)