Stakhanov Railcar ended 2012 in black after 9M losses

Stakhanov Railcar (SVGZ UK) reported a net profit of UAH 4.7 mln in 2012 under IFRS vs. UAH 159.6 mln under UAS last year, according to preliminary results released on March 22 in the company’s AGM announcement. It’s scheduled for April 25.

Roman Dmytrenko: After a net loss of UAH 16.8 mln in 9M12, Stakhanov Railcar earned UAH 21.5 mln net profit in 4Q12, which might indicate that the company’s costly EU-made casting supplies are starting to pay off. As a result, Stakhanov Railcar emerged unscathed from a ban on railcar exports to Russia slapped on its main competitors – Kryukiv Railcar (KVBZ UK) and Dniprovahonmash (DNVM UK) – whose only casting parts supplier lost its Russian quality certificate. Though we expect 2013 will be tough for Stakhanov Railcar, we estimate the company will improve its bottom line to UAH 37 mln for the year.