Stakhaniv Wagon Sees Sales Jump By 5-Times In 1Q07

Stakhaniv Wagon Works (SVGZ: BUY), part of the KRAZ Corporation which includes AvtoKrAZ (KRAZ: BUY), reported sales of USD 55 mln in 1Q, an increase of nearly five-times yoy. Over the same period, SVGZ increased its railcar output by over 6-times to 1471 cars. Inna Perepelytsya: The company’s 1Q results pleasantly surprised us, production output was 1.5 times higher than our projections. SVGZ’s strong production figures are the result of the effective implementation of a recently adopted investment program which foresees increasing plant capacity to 10 ths railcars by 2008.