Kryukiv targets making 6 ths freight railcars in 2010

Kryukiv Wagon (UX: KVBZ UK) Board President Evgeniy Khvorost said on Friday in an interview that the company is targeting the production of 6 ths freight railcars in 2010, given its orders so far from Russia, Belarus, Kazakhstan and the Baltics. Kryukiv produced 3.3 ths freight railcars in 2009. Yegor Samusenko: Management’s production target for 2010 is 20% above our forecast. Demand for freight railcars from Russia has revived since autumn when cargo traffic started improving there toward pre-crisis levels. Kryukiv Wagon has now been producing more than 500 railcars per month (6,000 annualized) for three consecutive months, thus it can achieve its goal if demand stays at current levels. But we remain cautious on the rapid pace of demand recovery for railcars and stay with our projections of 5,000 railcars in 2010E. We maintain our USD 3.5 per share target price (29% upside).