Dniprovahonmash Lifts Sales 77% In 5M07

Dniprovahonmash (DNVM), the third largest producer of freight cars in Ukraine, increased sales 77% yoy in 5M07 to USD 63.4 mln. More than 80% of the company’s products were exported to Russia during the same period. Inna Perepelytsya: Dniprovahonmash is building ties to the booming Russian market, earlier this year it sold gondola cars to transportation companies related to Gazprom. The impressive 77% sales increase is tempered by a low comparison base for production in 1Q06. We believe that Dniprovahonmash has already produced over 1,500 freight cars in 5M07 and this positive upward trend will result in an increase in production of more than 20% yoy in 2007.