Kryukiv Wagon ups freight railcar output 7% yoy in 1H12

Kryukiv Wagon (KVBZ UK) increased its freight railcar production by 7.3% yoy to 5,532 units in 1H12, the company reported yesterday. Without a bogie casting deficit, the company operated at close to its full capacity, producing 1,051 freight wagons in June. Production of passenger wagons grew 9x yoy to 45 units in 1H12, backed by strong orders from Kazakhstan.

Roman Dmytrenko: Stability in the company’s recent monthly production indicates Kryukiv might beat our initial full-year production forecast by 12% and make 11,500 freight railcars in 2012, while the recent exit of Kremenchug Steel Casting’s majority shareholder from Kryukiv’s ownership creates a risk that the bogie casting supplies from this producer might become an issue again. We continue to stick to our forecast that the company will manufacture 10,200 freight wagons in 2012.