Kryukiv Wagon output returns to 1,000+ freight railcars in April

Kryukiv Wagon (KVBZ UK) produced 1,091 freight railcars in April (up 83% mom), saying it has completely recovered from a fire at its painting workshop, Interfax reported on Friday. The company returned to its usual monthly production level of 1,000+ railcars after a two-month disruption. Wagon output was flat yoy at 3,441 units in 4M12.

Roman Dmytrenko: We believe the company’s April recovery in output is partially attributed to a temporary easing in the bogie casting deficit, as Azovmash, a large Ukrainian railcar and casting producer, increased casting sales on the open market as its own production of tank railcars was temporarily suspended by Russian authorities (see our news dated April 9). We also believe the ban on Azovmash-made railcars will be short-lived and a casting deficit will be an issue again, putting Kryukiv’s full year production plan of 10,750 freight wagons at risk. We stick to our forecast that the company will miss its production plan by 5%, manufacturing 10,200 freight wagons in 2012.