Kryukiv Wagon makes 21 passenger wagons in 2009

Kryukiv Wagon (UX: KVBZ UK) produced 21 passenger railcars last year, 91 wagons less than in 2008, Board President Evgeniy Khvorost said yesterday, according to Interfax. Khvorost said the cars were all delivered to Belarus. Yegor Samusenko: Passenger railcars accounted for 5% of Kryukiv Wagon’s 2009E sales, while historically this segment accounted for 15-20% of sales. We expect demand for passenger railcars to pick back up only in 2011, as Kryukiv’s main customer, Ukrzaliznytsya, has limited sources to finance its investment program. We view this news neutral for the stock because both the lack of Ukrzaliznytsya orders and small Belarus order were known in 1H09.