OREANDA-NEWS. On 30 January 2008 Stakhanov Railcar Plant announced, that its output increased to 5556 railcars (+160% y/y) in 2007, which was an absolute record for the company.  Last year SVGZ tripled sales to USD 240mn. EBITDA of USD 15.4mn and net income USD 9.9mn (+300% y/y) imply margins of 6.5% and 4.1% respectively. SVGZ invested USD 10mn in 2007 to restore its production potential, introduce energy-saving and diversify its business (via creating a unit producing metal structures 0.052mn tpy). These funds were partially sourced from two additional share issues (of USD 7.6mn) held in 2007.

SVGZ's investment program suggests an 18.8% increase in railcar output (to 6,600) in 2008. The CEO of SVGZ announced that the company's net income would increase by 67% or USD 16.53mn in 2008. To achieve this goal SVGZ will expand its fixed assets by USD 40mn, while the personnel will increase from a current 5,700 people (+54% y/y growth in 2007) to 6,700 in 2008. The main threats to these goals are the shortage of the specific kinds of batches and problems with VAT compensations. The CEO added that the company had signed two new contracts with partners from Eastern Asia to export its products there in 2008.