Kryukiv Wagon increases output by 18% y-o-y in 7M11

Kryukiv Wagon (UX: KVBZ UK) produced 6,167 freight railcars in 7M11, up 18% y-o-y, Interfax reported yesterday. In July, output was 1,010 units, an increase of 23% m-o-m. The company also manufactured five passenger railcars, down 2x y-o-y. Vitaly Gorovoy: Generally, freight railcar output was slightly above our expectation for the company (we project 8,500 freight railcars in our DCF-model in 2011E). However, the actual decrease in passenger railcar production compared to our estimations should be compensated in full-year results in monetary terms. We project Kryukiv Wagon to post revenues of USD 695 mln in 2011E.