Kryukiv Wagon boosts output by 18% y-o-y in 8M11

Kryukiv Wagon (UX: KVBZ UK, BUY) produced 7,213 freight railcars in 8M11, up 18% y-o-y, Interfax reported yesterday. The company also manufactured five passenger railcars, down 2x y-o-y, according to information posted on the Ukrainian Exchange yesterday. In August, output was 1,046 freight railcars, an increase of 3.5% m-o-m. Vitaly Gorovoy: Generally, Kryukiv’s output figures were above our expectation: we project only 8,500 freight railcars in 2011E. We believe it is being driven by strong demand for freight railcars and a deficit of supply. We project Kryukiv Wagon to post revenues of USD 695 mln in 2011E.