America’s biggest container barge driver, Kirby Corporation (NYSE: KEX), today reported initial quarter internet revenues of $44.3 million, or $0.74 per share, compared to revenues of $32.5 million, or $0.54 per share, for the 2018 initial quarter. Excluding specific single fees, 2018 initial quarter internet revenues were $37.9 million, or $0.63 per share. Consolidated incomes for the initial quarter were $744.6 million compared to $741.7 million reported for the 2018 initial quarter.
“Kirby’s first quarter results were challenged by temporary weakness in marine transportation which resulted from record delay days,” commented Kirby President as well as Chief Executive OfficerDavid Grzebinski “Our distribution and services segment performed well, helping to offset the results from our marine businesses.”
Grzebinski stated that although the business expected climate associated hold-ups in the initial quarter, “this year we experienced significantly more than expected with persistent fog along the Gulf Coast, extended periods of ice on the Illinois River, and near record high water conditions on the Mississippi River.”
He included that “additionally, there were significant navigational delays resulting from lock maintenance and the closure of the Houston Ship Channel in March due to a fire at a chemical storage facility.”
These problems led to an approximate 80% rise in hold-up days from in 2014’s even more typical initial quarter.
“However, demand remained strong throughout the quarter, and barge utilization strengthened into the mid-90% range on average,” statedGrzebinski “I would like to thank our mariners and shore staff who performed extremely well despite these very difficult operating conditions, remaining focused on safety and serving the needs of our customers.”
Grzebinsk additionally kept in mind that mid-March, Kirby shut the procurement of Cenac Marine Services, LLC’s aquatic transport fleet.
“Cenac brings to Kirby a young fleet of well-maintained 30,000 barrel tank barges and new modern towboats, as well as highly-trained and first class mariners,” statedGrzebinsk “With tight market conditions across the inland industry, the Cenac acquisition is well-timed and will improve our ability to service our customers and enhance our long-term earnings potential.”
FULL YEAR EXPECTATION
Grzebinski stated that the business’s revenues support array for the year stays $3.25 to $3.75 per share.
Kirby 2019 capital expense overview is anticipated to be in the $225 to $245 million array. Capital investing support consists of about $45 million underway settlements on brand-new aquatic vessels, that includes 3 5000 horse power seaside tugboats as well as thirteen 2600 horse power inland towboats. Approximately $155 to $165 million is related to resources upgrades as well as renovations to existing inland as well as seaside aquatic devices (consisting of about $25 million for seaside ballast water therapy systems) as well as aquatic center renovations. The equilibrium of about $30 million mostly associates with brand-new equipment as well as devices, rental fleet development, center renovations, as well as infotech jobs in the circulation as well as solutions section.