11 November 2011
Stakhaniv Wagon (SVGZ UK) produced 455 freight railcars in October 2011, down 35% y-o-y and 17% m-o-m, Promishlennie Gruzi reported yesterday. Overall, freight railcar output in the CIS grew by 26% y-o-y in October, with gondola cars up 30% y-o-y. Roman Dmytrenko: Stakhaniv Wagon’s production has been gradually decreasing since June 2011, as the operational environment for the company has worsened due its major shareholder’s political affiliation. The company’s output in October was the lowest in the last twelve months. As the average sale price of Stakhaniv’s freight railcars declined by 6% m-o-m to USD 75 ths in November, we expect the company to post losses in 4Q11 after modest net profit of UAH 4.7 mln in 3Q11 (down 63% y-o-y), trimming net profit for 2011 to UAH 100 mln (down 61% y-o-y).