OREANDA-NEWS. May 25, 2010. Kryukiv Wagon (UX: KVBZ UK) raised its production of freight railcars in 4M10 by 4x yoy to 2,708 units, the company reported on Friday, according to Interfax. Kryukiv’s management previously stated they were targeting annual output of 6,000 railcars this year.

Concorde Capital: Kryukiv Wagon’s monthly output has been growing since September 2009, and has been 20% above its pre-crisis highs in the last two months. We expect Kryukiv Wagon to exceed its planned 6,000 output this year (the company already produced 45% of its annual target in 4M10). We think recent steel price drop by 10% in May (main cost component), if sustainable, will allow keeping low wagon prices, thus keeping attractive demand.