Kryukiv Wagon output falls only 25% mom in February

Kryukiv Wagon (KVBZ UK) cut production 25% mom and 8% yoy to 755 freight railcars in February due to a bogie casting shortage, the company announced yesterday via Interfax. The company’s output grew 5% yoy to 1,755 freight railcars in 2M12.

Roman Dmytrenko: The output decline of only 25% mom in February looks quite encouraging, considering that the previous suspension of the quality certificate for Kremenchuk Steel Casting (the company’s main bogie casting supplier) led to a 73% mom drop in production in November 2011. At the same time, there is risk of a new suspension of the quality certificates of Ukrainian casting producers. Russian authorities again blamed a railroad accident last Sunday on a defect from bogie casting manufactured by Kremenchuk Steel Casting.