Kirby reports record quarterly profit
Tanker barge specialist Kirby Corp. announced record first quarter profit of $36.6 million, 50 percent higher than the $24.4 million for the 2007 first quarter.
Revenue was $330.6 million, up 21 percent over the $274.2 million reported for the year-earlier quarter.
'Marine transportation fundamentals remain favorable,' said Joe Pyne, Kirby's president and chief executive officer. 'We operated additional boats during the quarter and operated more equipment on time charters, which are insulated from revenue fluctuations caused by weather and navigational delays and temporary market declines.'
He added, 'Our diesel engine services segment continued to experience strong demand in our medium-speed markets, while our high-speed Gulf Coast market was, as expected, slower due to seasonal softness in the oil service market.'
The company said a major driver with respect to the 25 percent increase in marine transportation revenues was the recovery of higher diesel fuel costs.
For the second quarter, Pyne said, 'We expect our marine transportation business levels to remain strong and anticipate continued favorable contract and spot market rate increases.'
But he said the company anticipates a significant increase in delay days in the second quarter due to high water conditions on the Mississippi River System, which would negatively impact Kirby's second quarter financial results.