Stakhaniv Wagon posts UAH 51 mln loss in 3Q12

Stakhaniv Wagon (SVGZ UK) posted a UAH 51 mln loss in 3Q12 after UAH 22 mln in net profit in 2Q12, the company reported in its IFRS financials yesterday. Freight railcar output fell 5.5% qoq, while the revenue dropped 21% qoq to UAH 698 mln in 3Q12. The company’s average gondola railcar selling price fell 8% qoq to USD 66,000 while the price of platforms and dumpcars remained unchanged. Total sales reached UAH 2.2 bln with EBITDA margin of 2.8% in 9M12, net loss for the period reached UAH 16.8 mln.

Roman Dmytrenko: Despite the company’s efforts to diversify its product portfolio, gondola railcars still account for 64% of Stakhaniv’s total output. Moreover, financials show the company has not been able to pass production costs on to customers as demand for gondolas slows. We believe Stakhaniv may still report a positive bottom line in 2012 if the company continues to expand its production of specialized platforms and dumpcars with higher added value compared to common gondola wagons.