AvtoKrAZ increases output 76% mom in January

Heavy vehicle producer AvtoKrAZ (UX: AVTO UK) increased production in January by 76% mom to 109 trucks, the company reported yesterday. The company made a total of 654 trucks in 2009. Yegor Samusenko: AvtoKrAZ’ January output is still 3x below its monthly average pre-crisis in 2007-08. However, we believe AvtoKrAZ’ output recovery will outpace those of passenger car makers. There are two reasons for this: AvtoKrAZ has a higher share of exports than passenger car makers and emerging markets are recovering faster than Ukraine. The second reason is demand from mining companies for AvtoKrAZ vehicles, whose appetite is growing with increasing investments.