The Houston-based tank barge operator’s net earnings dropped to $58.1 million in the second quarter and its consolidated revenues dropped to $543.2 million.
Kirby Corporation’s net earnings dropped 22.5 percent year-over-year in the second quarter to $58.1 million, according to the company’s most recent unaudited financial statements.
The tank barge operator decreased diluted earnings per share from $1.31 per diluted share to $1.04 per diluted share.
Consolidated revenues for the quarter decreased 13.5 percent year-over-year to $543.2 million.
In the company’s marine transportation segment, revenues decreased 6.9 percent to $425.1 million from the prior year’s second quarter. Operating income dropped 16.4 percent to $97 million. Both the inland and coastal marine transportation markets maintained a tank barge utilization range between 90-95 percent in the quarter. Although operating conditions for the coastal market remained steady, inland marine operating conditions presented several challenges, especially late in the quarter, said Kirby Corp. High water conditions on the inland waterways lead to smaller tow sizes, transit time increases, navigational delays and certain lock closures.
In its diesel engine services segment, revenues decreased 31.1 percent to $118.1 million from the prior year’s second quarter. Operating income dropped 65.7 percent to $4.9 million. Kirby Corp. attributed the sharp decline in revenues and operating income to a decrease in the manufacture of new pressure pumping units and less demand from the oilfield service market for parts and services.
“For our diesel engine services segment, we expect demand to remain weak in the land-based diesel engine services market and the offshore oil services portion of the marine diesel engine services market.” Kirby Corp. President and CEO David Grzebinski said in a statement. “We expect demand to remain relatively stable in the remainder of the marine and power generation markets.
“Our earnings guidance for the 2015 third quarter is $0.95 to $1.10 per share and we are narrowing our full year 2015 guidance slightly to $4.10 to $4.35 per share,” Grzebinski said. “Our third quarter outlook reflects some impact on our inland marine business from challenging operating conditions.”
Based out of Houston, Texas, Kirby Corp. transports bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, along all three U.S. Coasts and in Alaska and Hawaii. In addition, the tank barge operator has six offshore dry-bulk barge and tugboat units responsible for the transportation of dry-bulk cargoes in the U.S. coastal trade. Kirby Corp.’s diesel engine services segment provides after-market service for medium and high speed diesel engines and reduction gears.
Kirby Corp. posts 22.5% decline in net earnings
