STIHL grows 16 percent and achieves record turnover

Waiblingen (ots) - The STIHL Group upped its turnover 16 percent
in 2010 to EUR 2.363 billion (10.1 percent, had currency exchange
rates remained unchanged). The growth is due to higher unit sales.
The company was able to increase its equity ratio slightly to 66.7
percent. STIHL executive board chairman Dr. Bertram Kandziora pointed
out at the company's press conference: "We have not only coped with
the world economic crisis in 2010 far better than the industry
average, but have achieved a new record turnover." Worldwide
investments totaled EUR 122.7 million and were primarily channeled
into the development of new products and technologies. Dr. Kandziora
is optimistic about the prospects for fiscal year 2011: "We will be
launching many new products on the market in our company's 85th
anniversary year. Business in the first quarter of this year has been
very promising."

World market position further consolidated

"STIHL gasoline chainsaw sales grew faster than international
markets as a whole - that enabled us to further consolidate our world
market position," explained Dr. Kandziora. Growth in sales of the
other gasoline power tools was boosted by a generally better economic
environment and favorable weather conditions in many regions. All in
all, above-average increases in unit sales were recorded in North and
South America, Asia and several parts of Eastern Europe. The share of
turnover achieved outside Germany was 89.3 percent.

More jobs, liquidity up

The greatest challenge was the strong growth in production, which
necessitated a fast and flexible response from all locations. The
number of employees in the Group increased 3.9 percent to 11,310 as
of December 31, 2010.

The cost cutting programs launched in 2009 to counter the
worldwide economic crisis were systematically continued in 2010. This
resulted in a further increase in liquidity and enabled all Group
investments to be financed from liquid assets.

Electronic engineering main focus of development activities

The main focus of development activities in 2010 was again on
electronic engineering - with the aim of further improving customer
benefits. Following the successful launch of the cordless hedge
trimmers, the line of cordless power tools was expanded with the
addition of two grass trimmers, a blower, two VIKING lawnmowers and
STIHL's first battery-powered chainsaw. The electronic engine control
system for gasoline-powered products was adapted for use in a STIHL
brushcutter and upgraded with important functions for chainsaws.
STIHL developed the first electronic water-feed control for cut-off
machines.

Future-oriented new products

All the cordless power tools launched up to now have been very
well received by customers. A number of new products will also be
introduced on the market this spring. They include the STIHL HS 46
and HS 46 C-E gasoline hedge trimmers for homeowners and the HS 56 C-
E for professionals in horticulture and landscaping, land maintenance
and agriculture. Weighing only 4 kilograms, the STIHL HS 46 is one of
the lightest gasoline hedge trimmers in the world. The line of
gasoline chainsaws has been broadened recently with the STIHL MS 241
C-M. It is the first chainsaw to come standard with M- Tronic. This
fully electronic engine management system ensures precise control of
ignition timing and fuel metering to obtain maximum engine power in
all operating conditions. The lightest professional chainsaw in the
STIHL line is the new STIHL MS 201, which scales only 3.9 kilograms
(powerhead without guide bar and chain). A special top handle version
of this lightweight, the MS 201 T, is available for professional tree
surgery. Convincing features of the new STIHL FS 240 C-E and FS 260
C-E brushcutters are a simplified starting procedure and improved
ergonomics. Like the above-mentioned gasoline chainsaws, they are
powered by STIHL's particularly fuel efficient 2-MIX engine.

VIKING's line of ride-on mowers was enlarged with the introduction
of the new VIKING MR 4082, which recently won the internationally
renowned "red dot product design award 2011". Assessment criteria for
the "red dot award" include aspects such as degree of innovation,
functionality, ergonomics, longevity and ecological compatibility.
The highly maneuverable ride-on mower has a turning circle of only 65
centimeters and is designed to meet the demands of hobby gardeners.
It is suitable for lawns up to about 4,000 square meters.

Founding company grows 18.5 percent, employees participate in
company's success

The German founding company, i.e. the seven production plants in
Germany, also profited from the worldwide recovery. Turnover climbed
18.5 percent to EUR 801.2 million. The export share was up slightly
to 87.6 percent. Investments dipped EUR 1.5 million to EUR 48.1
million. Considerable funds went into research and development in
Waiblingen for expansion of the product line.

The workforce at the founding company increased 5.1 percent to
3,874 last year. Of this total 2,925 were employed in Waiblingen, 590
in Prüm Weinsheim, 301 in Ludwigsburg and 58 in Wiechs am Randen.
Employees will receive 10 percent interest on their participating
rights for 2010. In addition, all permanent staff members will
receive a merit bonus amounting to 50 percent of one month's salary,
the minimum bonus being EUR 1350. The average length of service with
the company has risen slightly and is now 15.8 years. The executive
board chairman was pleased to note that 70 percent of the workforce
took part in the "ideeplus" suggestion scheme: "We achieved record
savings of EUR 1.9 million and rewarded our resourceful staff with
bonuses totaling more than EUR 400,000."

Employee galas and celebrations with customers in STIHL
anniversary year STIHL was founded by Andreas Stihl as a one-man
business in 1926 and has since grown into an international group of
companies. Dr. Kandziora is looking forward to the celebrations with
employees and customers: "To show our appreciation for the great
commitment of our staff we are organizing a grand company fête in the
grounds of Plant 2 in Waiblingen-Neustadt on July 16." All employees
and pensioners from Waiblingen, Ludwigsburg and Wiechs am Randen are
invited together with their spouses, partners and children. The
anniversary celebration with international customers will be held in
October when some 220 guests from 75 countries are expected to
attend. There are more company anniversaries and staff fêtes on the
agenda in 2011: The plant in Wiechs am Randen will be celebrating its
50th anniversary in September, while STIHL's magnesium die casting
facility in Prüm-Weinsheim celebrates its 40th anniversary in June.

German market growing steadily

STIHL's turnover on the German market increased by 2.3% in 2010,
following growth of 4% in crisis year 2009. At the end of the first
quarter this year, turnover in Germany is well above that of the same
period last year. "A stunning array of new products from STIHL and
VIKING, excellent advertising and sales promotion activities and
favorable weather conditions have all contributed to the positive
development," said executive board chairman Dr. Kandziora. Customers
all over Germany were recently able to test numerous new products
from STIHL and VIKING at the first nationwide STIHL Test Day on April
9, which was deemed a great success by both customers and
participating servicing dealers.

"I am sure that we will continue to grow in the German market.
People want to feel good in their gardens, which are becoming
increasingly like a second living room. And customers particularly
appreciate quality products from STIHL and VIKING for garden care,"
said Dr. Kandziora.

Chairman is optimistic for 2011

Compared to the competition, STIHL has come out of the crisis
stronger than before. Executive board chairman Dr. Kandziora sees
this as the result of a successful company strategy: "We reduced
costs during the crisis but did not save on important investments in
products, future technologies and markets. On the contrary - we
actually increased our development activities in the crisis."

Dr. Kandziora is optimistic about the future and plans further
growth for the current year, albeit at a slower rate than 2010. He
expects a strong world economy for the time being. The rising cost of
fabricated products could have a detrimental impact in this respect.
"2011 has started very well. Nevertheless we must observe
developments in the markets very closely and remain flexible."

Company Portrait

The STIHL Group develops, manufactures and distributes power tools
for forestry, landscape maintenance and the construction industry.
The range of garden power tools from VIKING complements the product
line. Products are distributed exclusively through authorized
dealers, including 32 marketing subsidiaries, more than 120 importers
and about 38,000 dealers in more than 160 countries. STIHL has been
the world's top-selling chain saw brand since 1971. The company was
founded in 1926 and is based in Waiblingen near Stuttgart. In 2010,
STIHL achieved a worldwide sales volume of EUR 2.36 billion with a
workforce of 11,310.

This press release and pictures are available for downloading from
the STIHL website http://www.stihl.com/index.htm

Your contact for daily and business press:
ANDREAS STIHL AG & Co. KG
Dr. Stefan Caspari
Head of Corporate Communications and Public Relations
Badstrasse 115 / 71336 Waiblingen
Tel.: +49 - (0) 7151/26-1402
Fax.: +49 - (0) 7151/26-81402
E-Mail: stefan.caspari@stihl.de