UWC’s Operating Results for 2Q 2019
PJSC «Research and production corporation «United Wagon Company» («RPC UWC», the Holding or the Company) (MOEX: UWGN), Russia’s largest manufacturer of freight cars1, reports its operaing results for 2Q 2019. In 2Q 2019, the Company manufactured a total of 4.9 thousand railcars, 3.2% higher than in 2Q 2018.
The 1H production volume gained 11% compared to the figure of 2018 to reach 9.9 thousand railcars. The growth was due to larger production of specialized rolling stock. The production of hopper cars in 2Q grew 47% year-over-year to 1.7 thousand railcars, and in 1H by 48% to 3.2 thousand railcars compared to 1H 2018, with their share in the production pattern raising to 33%. The production of other specialised railcars (flat cars, covered cars, etc.) grew by 26% in 2Q and by 39% in 1H, reaching 769 and 1490 railcars, respectively. The tank car production decreased by 14% in 2Q and gained 11% in 1H year-over-year, reaching 250 and 493 railcars, respectively. However, with the market switching to the specialised rolling stock, the Company opted to reduce its production of gondola cars by 18% to 2.2 thousand in 2Q and 10% to 4.7 thousand in 1H 2019.
In the reporting period, UWC certified its new molasses tank car and 2 dump car models equipped with 25-tf bogies. It had therefore a total of 61 certified models and modifications at the end of the reporting period.
In 1H, 6.4 thousand railcars (or 66% of the newly built rolling stock sold in the reporting year) were sold directly to third parties. The largest deliveries were made to GTLK (gondola cars and flat cars), Rusagrotrans (hopper cars), Kronospan (timber flat cars), EuroChem (hopper cars), TD Rif (hopper cars), Uralkali (hopper cars), and VTB Leasing (hopper cars). These companies acquired a total of 4.3 thousand railcars from the Holding. Other deliveries were made to NPO Azot (tank cars), Kuchuksulphate (box cars), TEXOL Group (Kazakhstan, tank cars) and other customers. Over the 6 months of 2019, the rolling stock made by UWC was purchased by a total of 40 companies.
The fleet owned and leased by RPC UWC increased by 27% over 1H reaching 15.1 thousand railcars. The fleet grew as 3.3 thousand railcars delivered to GTLK, other than under the contracts referred to above, over the 6 months of this year were transferred to RPC UWC’s leasing entity for financial lease.
At the end of 2Q 2019, the fleet size managed by the shipping company UNICON 1520 remained unchanged compared to the preceding quarter: 1.1 thousand tank containers, 585 flat cars and 78 tank cars. Shipments over the quarter totalled 110.4 thousand tons, an increase of 72% over the figure of 2Q 2018.
There were no changes to the number or structure of PRC UWC’s service centre network in the reporting quarter. At the end of the reporting quarter, the service centre network included a total of 72 car repair facilities with 17 service centres having the top category.
1As stated by INFOLine-Analytics: https://infoline.spb.ru/news/?news=162724
