Ukrainian railcar makers cut exports 70% yoy in 1H09

Russian Railways reported yesterday that Ukrainian freight railcar manufacturers reduced exports by 70% yoy to about 9 ths units. Volumes to Russia decreased 82.6% yoy to 2,248 units, while exports to Kazakhstan, up 2.3x to 1,321 units, and Belarus, up 2.9x to 205 units, increased. Yegor Samusenko: Exports make up as much as 90% of Ukrainian railcar producers’ output, which implies that manufacturers are cutting production in line with export declines. Though, recent news on the increase in demand for railway transportation in Russia leads us to believe that Ukrainian manufacturers will partially recover their production levels in the second half of the year.