Kruykiv Wagon Lifts Output 70% yoy in 2007

According to Interfax, Kruykiv Wagon (KVBZ: HOLD) boosted production 70% yoy to 7,479 railcars in 2007: 7,445 freight railcars and 34 passenger cars. This year the company plans to increase production by 30% yoy. Kruykiv Wagon also announced it has agreed to deliver 20 passenger railcars to Belarus by 2009. Inna Perepelytsya: Kryukiv’s freight railcar output is 8% more than we forecasted, though passenger car production is 8% lower. The company has not reported its 2007 sales yet, but we believe it will generally be in line with our forecast of USD 401 mln. We maintain our HOLD recommendation.