Dniprovahonmash produces 4.6 ths railcars in 2010

Dniprovahonmash (UX: DNVM UK), fourth largest cargo railcar producer in Ukraine, increased its output by 5.1x to 4,637 cargo railcars in 2010. Yegor Samusenko: The company’s capacity utilization in 2010 was 93%, in line with other sector producers, which delivered historically high output volumes to satisfy demand from Russian cargo rail operators. We see strong demand continuing in 2011 and expect all Ukrainian producers to deliver 90%-100% of 2010 production, but increase their top lines thanks to expected 10-20% average railcar price appreciation. Dniprovahonmash remains out of our coverage due to its illiquidity.