Kirby Corporation Announces Expansion of Diesel Engine Services

        Distributorship With the Electro-Motive Division of General Motors       - Passenger and Class II Railroad Markets Added to Current Shortline And                               Industrial Railroads      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.                     MAKE YOUR OPINION COUNT -  Click Here          SOURCE  Kirby Corporation         (KEX)   CO:  Kirby Corporation; Rail Systems, Inc.; General Motors  ST:  Texas  IN:  OIL TRN AUT  SU:  
Press spacebar to pause and continue. Press esc to stop.