Stakhaniv Wagon boosts net income to UAH 260.7 mln in 2010
24 February 2011
Stakhaniv Wagon (UX: SVGZ UK), a freight railcar producer, reported net income of UAH 260.7 mln in 2010 vs. a net loss of UAH 56.3 mln in 2009, according to an AGM announcement released yesterday. Yegor Samusenko: We note this implies an exceptionally high net margin of ~9% at our estimations of the company’s top line. This figure was above our expectations and contrary to both weak 9M10 results and talk of growing input prices in 4Q10. Though we will seek out management’s comments on the earnings and detailed financials, we note that 1Q11 should be one of the best quarters for railcar producers given 15% q-o-q growth in railcar prices, which has outpaced input price growth.
