Krukiv Wagon increases output 24% yoy in January

Kryukiv Wagon (KVBZ UK) produced 1,000 freight railcars in January, up 23.8% yoy, Interfax reported on Friday. The company did not produce passenger railcars last month.

Roman Dmytrenko: Kryukiv Wagon’s output has been stable at slightly over 1,000 freight railcars per month since July 2011. This was only interrupted temporarily by the unexpected 73% mom decline in October-November 2011 as Russian authorities suspended the certificate for bogie castings from the company’s main supplier, Kremenchuk Casting. We expect Kryukiv Wagon to report a significant mom production decline in February, as the Kremenchuk Casting’s certificate was again suspended at the beginning of this month. We expect the company to decrease its overall output by 5% yoy to 10,200 freight railcars in 2012, as it remains sensitive to sudden shortages in casting supplies from Kremenchuk Casting.