Azovmash maintains December output level in January

Azovmash, which includes Azovzahalmash (UX: AZGM UK) and Mariupol Heavy Machinery (UX: MZVM UK), produced 830 railcars in January (755 tank cars and 75 gondolas), vs. 853 railcars in December, Interfax reported yesterday, citing the company’s press office. Yegor Samusenko: This is a second month in succession Azovmash’s output exceeded its 2005-2008 monthly average, after a slowdown in production in 4Q08-3Q09. We are cautiously optimistic about Azovmash’s prospects in 2010, but our concerns are with the fact that gondola railcars remain a small share of Azovmash’s production while they accounted up to half of 2005-2008 sales. We see this news as neutral for Mariupol Heavy Machinery and Azovzahalmash stocks.