Stakhaniv Wagon raises sales 1.2x in 2011
27 January 2012
Stakhaniv Wagon (SVGZ UK) increased its revenue 20% yoy to UAH 3.5 bln in 2011 (USD 550 mln), based on preliminary results published yesterday. Profit before tax fell 22% yoy to UAH 206 mln (USD 26 mln). The company produced 6,810 freight railcars in 2011 (down 8.4% yoy), including 6,358 gondola cars (93% of total). Stakhaniv missed its initial production target of 8,000 railcars, blaming a decline in casting parts supplies in 2H11.
Roman Dmytrenko: The announced revenue figure for 2011 implies an average gondola price of USD 64,000/unit, up 17% yoy but still 16% below the average market price for 2011. The company failed to fully benefit from the 38% yoy appreciation in the average price of gondola cars in the CIS in 2011. We believe this is probably related to its price being fixed in contracts it signed with VTB Leasing back in 2010. Accordingly, the company suffered from an estimated 36% yoy increase in COGS, which led it to decrease its PBT margin by 3.4 pp yoy to only 5.8% in 2011. We expect demand for freight railcars in the CIS to remain high in 2012, which should continue to support high prices. The possible acquisition of Czech casting producer CKD Kutna Hora by the company’s majority shareholder in 2012 would give it more flexibility in cost management and meet its demand for casting parts, potentially allowing it to make ~8,000 wagons this year.
