26 October 2011
Stakhaniv Wagon’s (UX: SVGZ UK, BUY) net income declined by 18.1% y-o-y to UAH 125.5 mln in 9M11, while revenues grew by 41.4% y-o-y to UAH 2.7 bln, the company reported yesterday. The company produced 5,565 freight railcars in 9M11, up 4.4% y-o-y. EBITDA margin for 9M11 decreased by 2 pp y-o-y to 6.7%, and net margin decreased by 3 pp y-o-y to 4.5%. Roman Dmytrenko: We attribute the decrease in EBITDA margin to inflated materials costs: the company reported the average prices of rolled steel and casting grew by 34% and 52% y-o-y respectively in 9M11, while we estimate the average selling price of Stakhaniv’s freight railcars rose by just 40% y-o-y. In addition, the company’s bottom line was affected by growth in income tax (UAH 16.4 mln in 9M11 vs. zero in 9M10).