Kryukiv Wagon’s Net Income Up Twofold in 2007

Kryukiv Wagon (KVBZ: HOLD) increased its net income by 2.1 times to USD 39.6 mln in 2007 (3.5% less than our projection), according to preliminary figures from the agenda for the company’s April 18 AGM. The company expects 2007 sales to amount to USD 396 mln (12.6% under than our forecast); while in 2008 it anticipates sales of USD 535 mln (+35% yoy). Inna Perepelytsya: The company’s 2008 sales guidance was publicly available in December 2007 and we have already taken it into account in our industry report of January 28, 2008. We reiterate our HOLD recommendation on the stock.