Dniprovahonmash cuts output, P&L 27-28% qoq in 3Q12

Dniprovahonmash (DNVM UK) cut its net income 28.0% qoq to UAH 196.4 mln in 3Q12, the company reported in IFRS financials yesterday. EBITDA decreased 27.2% qoq to UAH 252.5 mln in 3Q12. Freight railcar output fell 28.5% qoq to 1,310 units, dragging total revenue down 28.0% yoy to UAH 891.6 mln for 3Q12. Aggregate wagon production declined 6.9% yoy to 5,373 units in 9M12.

Roman Dmytrenko: Dniprovahonmash continues to concentrate on the production of popular gondola wagons (used primarily by metals & mining companies) and appears to be one of the first victims of the industrial slowdown of its main customers. We note that earlier this month Kryukiv Wagon (KVBZ UK), another Ukrainian freight railcar manufacturer with a more diversified product portfolio, reported a 3.9% yoy increase in its aggregate freight railcar output for 9M12.