Kirby Corporation Announces Revisions to Guidance for 2012 Second Quarter and Year
Kirby Corporation (NYSE: KEX) announced Friday that it expects 2012 second quarter net earnings to be in the $.80 to $.85 per share range, below Kirby's previously announced earnings guidance range of $.97 to $1.02 per share, but above 2011 second quarter earnings of $.77 per share. For the 2012 year, Kirby is revising its earnings guidance to $3.45 to $3.70 per share, below previously announced guidance range of $3.85 to $4.05 per share, but above 2011 year earnings of $3.33 per share. The $3.45 to $3.70 per share 2012 year guidance range includes the $.05 per share first quarter charge to the United Holdings contingent earnout liability, but does not include any future earnout charges, and includes $.03 per share of first and second quarter severance charges associated with the integration of Kirby Offshore Marine into Kirby.
Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented, "Our lower guidance reflects deterioration in the manufacturing area and softness in the oil field related engine and transmission sales and service and parts sales at United Holdings, our land-based diesel engine services operation. The lower guidance also reflects higher maintenance expenditures, lower than anticipated general and administrative savings and an additional severance charge at Kirby Offshore Marine, formerly K-Sea Transportation Partners LLC, our coastal tank barge operation. Also, during the second quarter our inland tank barge business experienced lower petrochemical volumes from a major customer due to both scheduled and unscheduled plant maintenance at multiple facilities, and some Mississippi River System low water operating problems. While numerous negative issues have resulted in the lowering of our 2012 second quarter earnings guidance, for the 2012 year the primary difference between our low end guidance of $3.45 per share and high end guidance of $3.70 per share is the level of United's oil field related business in the second half of the year."
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