Kryukiv Wagon upgrades March output target 21%

Kryukiv Wagon (KVBZ UK) raised its freight railcar production outlook for March by 21% to 845 units (down 2.5% yoy), according to a press release Friday. Consequently, the company’s 1Q12 output target increased 3.2% yoy to 2,600 units. Two weeks ago, the company cut its March production outlook from 1,000 units to 700, blaming damage from a fire at its painting workshop in mid-February.

Alexander Paraschiy: We believe the company’s production target upgrade is related to Kryukiv Wagon’s ability to return to its normal production levels earlier than management’s initial expectations. The upward review for March indicates that damages due to the fire was overestimated. We see the news as slightly positive for the stock.