Distributorship With the Electro-Motive Division of General Motors
- Passenger and Class II Railroad Markets Added to Current Shortline And
HOUSTON, June 27 /PRNewswire/ -- Kirby Corporation (NYSE: KEX) ("Kirby")
announced today that its diesel engine services subsidiary, Rail Systems,
Inc., has entered into an agreement with the Electro-Motive Division of
General Motors ("EMD") to distribute EMD replacement parts to certain United
States passenger and Class II railroads effective July 1, 2001. These new
railroads segments are anticipated to purchase between $4.5 to $5.5 million of
EMD replacement parts annually.
Kirby currently has distribution agreements with EMD to provide
replacement parts to shortline and industrial railroads throughout the United
States, to the marine, power generation and industrial applications in
17 Eastern States and the Caribbean, and to the nuclear industry worldwide.
The Company also operates non-exclusive service centers in the Midwest, Gulf
Coast and West Coast regions.
This agreement for passenger and Class II distribution is expected to be
marginally accretive to Kirby's earnings throughout the remainder of 2001.
After being fully integrated by early 2002, the passenger and Class II
railroad business should provide operating margins that are consistent with
Kirby's current diesel engine services segment.
Joe Pyne, Kirby's President and Chief Executive Officer, commented, "The
rail passenger transportation distributorship is very complimentary to our
shortline and industrial rail business. We began our relationship with EMD
35 years ago and we are pleased by our extended service arrangement. The
expansion of our diesel parts distribution is consistent with our strategy of
selectively adding to this business segment along with growing our core inland
tank barge operations."
Diesel engine services revenue of $21.2 million for the quarter ended
March 31, 2001 and $69.4 million for the 2000 year, represented 16% and 14%,
respectively, of Kirby's total revenue of $133.1 million for the first quarter
ended March 31, 2001 and $512.6 million for the 2000 year.
Kirby Corporation, based in Houston, Texas, operates 871 inland tank
barges, with 15.6 million barrels of capacity, and 215 towing vessels,
transporting chemicals, petrochemicals, refined petroleum products, black oil
and agricultural chemicals throughout the United States' inland waterway
system. Through its diesel engine services segment, Kirby provides after-
market service for large medium-speed diesel engines used in marine, power
generation, industrial, nuclear and rail applications.
Statements contained in this press release with respect to the future are
forward-looking statements. These statements reflect management's reasonable
judgement with respect to future events. Forward-looking statements involve
risks and uncertainties. Actual results could differ materially from those
anticipated as a result of various factors, including cyclical or other
downturns in demand, significant pricing competition, unanticipated additions
to industry capacity, changes in the Jones Act or in U. S. maritime policy and
practice, fuel costs, interest rates, weather conditions and the timing,
magnitude and the number of acquisitions made by Kirby. A list of additional
risk factors can be found in Kirby's annual report on Form 10K for the year
ended December 31, 2000, filed with the Securities and Exchange Commission.
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SOURCE Kirby Corporation
/CONTACT: Steve Holcomb of Kirby Corporation, 713-435-1000/
CO: Kirby Corporation; Rail Systems, Inc.; General Motors
IN: OIL TRN AUT
-0- Jun/27/2001 11:02 GMT
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