16.01.2025
WINTERSTEIGER: Record cash flow and strategic action pave the way to the future
Edward Bissell, founder and managing director of Union Grove Saw & Knife (second from right), with his wife and employee Hollie and (from left) WINTERSTEIGER CEO Harold Kostka, Victoria Schlosser, Director Legal & M&A, and CTO Thomas Fürkötter© WINTERSTEIGER
Boosted by a record-setting free cash flow, WINTERSTEIGER is taking key strategic steps with a clear focus on the North American market and the founding of a new division.
"We will always be anchored in Europe, but to ensure sustainable growth, we are focusing on dynamic markets such as North America," explained WINTERSTEIGER CEO Harold Kostka. Following the successful introduction of a holding structure in 2023, the machinery and plant engineering group based in Ried im Innkreis, Upper Austria, moved forward in 2024 with the restructure of its North American business, which accounts for around a quarter of Group turnover. The company's long-standing central structure in Salt Lake City has been converted into three specialist companies, each of which serves the specific needs of the three major divisions, Seedmech (Iowa), Sports (Utah) and Woodtech (Tennessee). This was accompanied by the successful acquisition of a majority shareholding in Union Grove Saw & Knife Inc., a leading sawing tool business in North Carolina, at the beginning of the year. This acquisition will enable WINTERSTEIGER to raise its profile in the Appalachian region – a center of the wood processing industry – and expand its portfolio along the value chain.
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Sound financial footing thanks to record cash flow
"Despite the difficult economic situation, which saw our sales drop by around five percent, we managed to increase our free cash flow to an all-time best in 2024," CEO Kostka pointed out. He noted that shared efforts across the group – in particular a reduction in inventories – have put the company in a sound financial position to implement and fund future growth projects itself. According to Kostka, systematically contracting the balance sheet through a reduction in inventories has had a further positive effect: "WINTERSTEIGER's equity ratio has risen to around 50 % for the first time in years of growth, underscoring our strong financial position."
Dry & Protect division offers new prospects
Evolving its business models is a central component of the company's strategy. One example of this can be seen at subsidiary Steurer in Austria's Vorarlberg region. In addition to manufacturing ski storage lockers, Steurer has been producing hygiene and drying solutions featuring the patented Sterex technology since its acquisition in 2020. "Growing demand for these innovative products prompted us to split Dry & Protect from our Sports division at the turn of the year, and operate it as an independent division going forward."
WINTERSTEIGER is confident that these steps have strengthened its position for the future. The company's clear strategic focus, combined with its financial stability, are creating the basis for sustainable and profitable growth worldwide, while securing the company's competitive edge and 1,200 jobs for the long term.
Facts and figures: Union Grove Saw & Knife Inc.
Facts and figures: Union Grove Saw & Knife Inc.
| Founded: | 1983 |
| Headquarters: | Union Grove, North Carolina, USA |
| Sales: | ~ 5 million USD |
| Employees: |
approx. 60 people |
| Products: | Circular and band saw blades, other sawing tools, accessories and service |
| Website: | www.sawandknife.com |