Stakhaniv Wagon production down 23% yoy in 10M12

Stakhaniv Wagon (SVGZ UK) cut its freight car production 23% yoy to 4,578 units in 10M12, Interfax reported on Nov. 22. Monthly freight car output fell 13% yoy to 395 units (245 gondolas and 150 hoppers) in October. Revenue reached UAH 2.6 bln in 10M12 (vs UAH 2.2 bln in 9M12).

Roman Dmytrenko: Apart from fading demand for gondola cars, which is looming over the CIS freight car market, we see the shortage of bogie casting supplies to Stakhaniv as a main reason for the drop in company output. The reported data implies that on average Stakhaniv has been producing 450 freight cars per month in 10M12, which equals the maximum production capacity of its related bogie casting supplier, Czech Kutna Hora. With no additional sources of bogie casting seen by the year’s end, we expect Stakhaniv’s full year output to be limited by 5,500 freight cars (down 19% yoy) with revenue sliding 8.5% yoy to UAH 3.2 bln in 2012.