Luhanskteplovoz reportedly meets 1Q production plan

Luhanskteplovoz (LTPL UK) manufactured 12 diesel locomotive sections for Russian Railways in March (vs. 10 units a year ago) and assembled a DEL-02 diesel train for Ukrzaliznytsya. The company did not report 1Q numbers, but noted it outperformed its quarterly production plan by 4%. Overall the company supplied 24 diesel locomotive sections in 1Q12. Luhanskteplovoz also said it is currently assembling another DEL-02 diesel train and a pioneering locomotive powered by a General Electric diesel. Starting in April, the company plans to increase production of diesel locomotives for Russian Railways.

Roman Dmytrenko: The 24 diesel units sold in the 1Q represent only 15% of the company’s diesel locos order backlog for the full year. However, given the company reportedly outperformed its 1Q production plan and explicitly said it will increase diesel locomotive output in the following months, we believe the 156 diesel unit plan for 2012 is still attainable. This leads us to believe the company’s projected 50% yoy output growth (in value terms) is still realistic for 2012.