Kirby posts record profit

Kirby posts record profit Kirby Corp. reported record net profit of $30.1 million, up from $23.6 million in the same 2006 period.
   Revenue improved to $288 million from $243 million in the same 2006 period.
   Marine transportation revenue and operating income for the second quarter increased 13 percent and 25 percent, respectively, compared with the second quarter of 2006.
   Higher results in the second quarters of 2006 and 2007 reflected continued strong petrochemical and black oil demand, fleet efficiency resulting from operating additional towboats, improvements in the current shortage of vessel personnel, and higher rates on contract renewals and spot market pricing. The second quarter of 2007 also benefited from stronger seasonal agricultural chemical volumes.
   Diesel engine services revenue and operating income for the 2007 second quarter increased 49 percent and 59 percent, respectively, reflecting two acquisitions made last year. Kirby also purchased a third engine service company this month.
   Joe Pyne, Kirby’s chief executive officer, said he expected both businesses to do well in the first half and expects them to remain strong in the coming quarter.
   “Our inland marine transportation segment remains essentially fully utilized, volumes remain strong, pricing continues to trend upward and we have made slow but steady progress in alleviating our towboat and vessel personnel shortage issues,” Pyne said.
   The company expects to spend $160 million on capital improvements this year including $75 million for the construction of 30 tank barges and seven towboats. Delivery is scheduled throughout 2007 and into early 2008.