US farm with 93,000 hectares for sale: 10,000 cattle on 2 islands.
10,000 cattle, deer, bison, and a slaughterhouse in the middle of nowhere. One of the largest slaughterhouses in Alaska is located on the storm-battered Umnak Island.
Stihl Implements Cost-Cutting Measures Despite Revenue Growth
Stihl Group concluded the year 2024 with an overall positive result, showing an increase in revenue. At the balance sheet press conference, the annual revenue of 5.33 billion euros was announced, representing a 1.1 percent increase compared to the previous year when the company generated 5.27 billion euros. Despite challenges such as ongoing consumer reluctance, geopolitical uncertainty, and varying economic conditions in different regions in 2024, the revenue remained significantly higher than pre-pandemic levels. The manufacturer of chainsaws and motor-driven garden equipment generated more than 90 percent of its revenue from international markets.
Investing in the Future
Michael Traub, CEO of Stihl, highlighted the company's commitment to investing in future technologies, innovative products, and the enhancement of international sales and locations. The increase in the group's equity ratio from 65.9 percent to 69.0 percent demonstrates the financial stability of the family-owned company. By the end of 2024, the group employed 19,732 people globally, a slight decrease from the previous year (19,805).
Regional Market Variances
Stihl noted varying performances across different regional markets. North America, the strongest region for the manufacturer, saw stable market share growth despite challenging consumer conditions. In Latin America, political uncertainty, extreme weather events, and economic weakness impacted business negatively. Europe experienced mixed results, with the UK showing significant sales growth while Eastern Europe struggled due to the aftermath of the Ukraine conflict. Positive growth was observed in Africa and Asia, particularly in China and India.
Focus on Battery Technology
Battery-powered products account for 25 percent of Stihl's total sales, with an increasing emphasis on this technology in the company's portfolio. The shift towards battery products is seen as crucial for maintaining technological leadership, with investments in powerful battery products and charging infrastructure. Stihl invested globally in 2024, including significant investments in battery manufacturing facilities.
Reorganization at Headquarters
At the Waiblingen headquarters, Stihl is undergoing significant changes to align with the shift from gasoline to battery products. The company is adjusting its cost and personnel structures to match reduced growth forecasts, with a focus on maintaining competitiveness in Germany in the long term. Measures include cost-cutting programs and personnel adjustments that are being carried out socially responsibly.
Future Challenges and Strategies
Despite revenue growth, Stihl is facing high competitive pressure and the need for transformation in the coming years. The company reaffirms its commitment to the German location while also decentralizing decision-making and optimizing its global manufacturing network. The CEO anticipates moderate revenue growth in the low single digits amidst challenging market conditions.
Conclusion
The article "Stihl Implements Cost-Cutting Measures Despite Revenue Growth" was originally published in Agrartechnik.