Kirby Corporation To Build Additional Inland Tank Barges For Delivery In 2014

Kirby Corporation To Build Additional Inland Tank Barges For Delivery In 2014

PR Newswire

HOUSTON, March 17, 2014

HOUSTON, March 17, 2014 /PRNewswire/ --Kirby Corporation ("Kirby") (NYSE:KEX)
announced today the signing of agreements to construct 29 additional 30,000
barrel inland tank barges with a total capacity of 830,000 barrels for
delivery throughout 2014. Of the 29 inland tank barges, 18 are through the
assumption of shipyard construction contracts from another inland tank barge
operator and 11 are new orders placed by Kirby. Based on current commitments,
steel prices and projected delivery schedules, the cost of the 29 inland tank
barges is approximately $81 million. The construction of the 29 inland tank
barges are in addition to the previously announced construction during 2014 of
37 inland tank barges with a total capacity of 390,000 barrels at a cost of
approximately $45 million, as well as approximately $45 million in progress
payments on the construction of the 185,000 barrel coastal articulated tank
barge and tugboat unit announced in January 2014 for delivery in mid to late
2015.

Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented, "The 29
additional 30,000 barrel inland tank barges which are expected to be delivered
this year will help to meet the additional volume requirements driven by
strong and expanding movements of crude oil and natural gas condensate, as
well as new demand from expansions in the petrochemical and refining
industries."

Commenting on the 2014 first quarter guidance of $1.05 to $1.15 per share
issued in late January, Mr. Pyne said, "Our first quarter guidance included
some negative impact on our marine operations from the unfavorable winter
weather we experienced during the month of January. Since early January,
temperatures have primarily remained below freezing causing heavy ice on the
Illinois, upper Mississippi and upper Ohio Rivers. We have continued to
operate on these rivers despite the heavy ice conditions, but with additional
horsepower or reduced tow sizes. We are not yet able to quantify the effect of
the weather conditions on first quarter earnings, and we have also incurred a
$.03 per share severance charge in the quarter, but we still expect earnings
will be within the published guidance."

Kirby Corporation, based in Houston, Texas, is the nation's largest domestic
tank barge operator, transporting bulk liquid products throughout the
Mississippi River System, the Gulf Intracoastal Waterway, coastwise along all
three United States coasts and in Alaska and Hawaii. Kirby transports
petrochemicals, black oil, refined petroleum products and agricultural
chemicals by tank barge. Through the diesel engine services segment, Kirby
provides after-market service for medium-speed and high-speed diesel engines
and reduction gears used in marine and power generation applications. Kirby
also distributes and services high-speed diesel engines, transmissions, pumps,
compression products and manufactures and remanufactures oilfield service
equipment, including pressure pumping units, for land-based pressure pumping
and oilfield service markets.

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. Forward-looking
statements are based on currently available information and Kirby assumes no
obligation to update such statements. A list of additional risk factors can
be found in Kirby's annual report on Form 10-K for the year ended December 31,
2013 filed with the Securities and Exchange Commission.

SOURCE Kirby Corporation

Website: http://www.kirbycorp.com
Contact: Steve Holcomb, 713-435-1135
 
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