Kirby Corporation Confirms and Narrows Its 2011 Second Quarter Net Earnings Guidance After Impact of Mississippi River System’s High Water and Flooding Issues
HOUSTON, June 15, 2011 /PRNewswire/ — Kirby Corporation (“Kirby”) (NYSE: KEX) announced today that it confirms and narrows its 2011 second quarter earnings guidance to the $.72 to $.77 per share range compared with 2010 second quarter earnings of $.54 per share. Kirby anticipates the Mississippi River System’s high water and flooding conditions will continue until late June or early July and estimates the negative impact from the high water and flooding on its 2011 second quarter’s net earnings will be in the $.07 to $.08 per share range. On April 27, 2011, as part of Kirby’s first quarter earnings announcement, Kirby announced 2011 second quarter earnings guidance of $.67 to $.77 per share, including an estimated $.02 to $.07 per share negative impact from the high water and lock issues. On May 12, 2011 Kirby announced that the impact of the high water may be greater than $.07 per share, but was unable to quantify the impact until the situation more fully evolved.
Joe Pyne, Kirby’s Chairman and Chief Executive Officer, commented, “Currently, the Ohio River is back to normal levels while portions of the Illinois and Mississippi Rivers remain above flood stage. Based on current conditions, we anticipate that the high water and flooding conditions on the entire Mississippi River System, including the Gulf Intracoastal Waterway in the Morgan City area, will continue to improve and by July most of the waterways should return to normal levels.”
Mr. Pyne continued, “Despite the negative impact from the record high water and flooding conditions on our 2011 second quarter earnings, we anticipate our results will still be in the range of our original second quarter guidance. This is due in part to continued strong equipment utilization in the Gulf Intracoastal Waterway markets and some improvement in barge rates. Our United Holdings acquisition also contributed to our better than anticipated results. As we have previously stated, we anticipate that U.S. petrochemical production for both domestic use and exports will remain strong based in part on low U.S. natural gas prices, a basic feedstock for petrochemical production. U.S. refinery utilization is also anticipated to remain stable, with continued exports of diesel fuel and heavy fuel oil.”
Kirby Corporation, based in Houston, Texas, operates inland tank barges and towing vessels, transporting petrochemicals, black oil products, refined petroleum products and agricultural chemicals throughout the United States inland waterway system. Through the diesel engine services segment, Kirby provides after-market service for medium-speed and high-speed diesel engines and reduction gears used in marine and power generation applications, and distributes and services high-speed diesel engines, transmissions, including hydraulic fracturing equipment, for land-based pressure pumping and oilfield service markets.
Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management’s reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, changes in the Jones Act or in U.S. maritime policy and practice, fuel costs, interest rates, weather conditions, and timing, magnitude and number of acquisitions made by Kirby. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update such statements. A list of additional risk factors can be found in Kirby’s annual report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission.
SOURCE Kirby Corporation