Kryukiv Wagon increases railcar output by 44% y-o-y in 2M11

Kryukiv Wagon (UX: KVBZ UK) produced 1,670 freight railcars in 2M11, 44% y-o-y growth, the company reported in a press release on Friday. The company plans to produce 9,000 railcars in 2011, close to its 2010 production figure. Yegor Samusenko: Though the impressive 44% growth came mainly due to a low base in 2M10, monthly output figures are at historic highs. The company has been operating at full capacity utilization. We expect Kryukiv Wagon to increase its sales to USD 695 mln in 2011 (estimated 19% y-o-y growth) and improve its EBITDA twofold to USD 128 mln in 2011 due to a better outlook for railcar prices and lower pressure from steel casting suppliers, which were eating out margins in 2010.