Stakhaniv Wagon increases output by 15% y-o-y in 8M11

Stakhaniv Wagon (UX: SVGZ UK, BUY) produced 4,915 freight railcars in 8M11, up 15% y-o-y, portal Promishlennie Gruzi reported yesterday. In August, output was 550 freight railcars, down 17% m-o-m. Vitaly Gorovoy: We attribute the decline in August output to a one-week work stoppage that the company attributed to low input stocks, but rumors have been circulating in local media that the true reason was intrusive government inspections. Generally, Stakhaniv’s output is in line with our expectations: we project 7,500 freight railcars in 2011E. We reiterate our positive view on the company: TP: USD 1.61, BUY, upside: 195%.

Stakhaniv Wagon Output
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8M11    8M10  y-o-y,%  Aug. 2011  July 2011  m-o-m,%
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4,915    4,284    15%        550        665           -17%
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Source: Promishlennie Gruzi, Concorde Capital