Kirby Corporation Comments on the Impact of Hurricane Katrina on Its Operations
September 01 2005 - 7:25PM
PR Newswire (US)
HOUSTON, Sept. 1 /PRNewswire-FirstCall/ -- Kirby Corporation
(NYSE:KEX) ("Kirby") announced today that Hurricane Katrina caused
no noticeable damage to its inland tank barge fleet of 887 active
tank barges, 241 inland towboats, four 35% owned offshore dry-cargo
barge and tug units, and operating administrative facilities. Joe
Pyne, Kirby's President and Chief Executive Officer, commented,
"Refineries and petrochemical plants in the impacted area are
currently closed or operating at reduced levels. It is unknown as
to when many of these plants will be back in operation. With
respect to navigation, all waterways in the affected areas normally
navigated by Kirby vessels are open to barge traffic with the
exception of certain portions of the Gulf Intracoastal Waterway
between Houma, Louisiana and Florida. Movements along the Texas and
southwestern Louisiana Gulf Intracoastal Waterway, Kirby's major
area of marine transportation operation, are occurring on a normal
basis, as well as movements from these areas to destinations on the
Mississippi, Ohio and Illinois Rivers. The closed areas along the
Gulf Intracoastal Waterway are currently being surveyed and we are
hopeful they will be opened in the near future." Commenting on the
crewing of Kirby's towboats, Mr. Pyne stated, "At the present time,
all of our towboats are crewed. Some of our vessel personnel live
in the impacted area and the needs of their families come first. We
may experience some short-term crewing issues as we rotate crews to
address personal issues." Mr. Pyne further commented, "We do not
have enough information to fully evaluate the effect of Katrina on
Kirby's business. The impact of the closure of the refineries and
petrochemical plants, as well as the impact of these closures on
the U.S. economy, is unknown at this time. Historically, this kind
of disruption is short to medium-term positive due to disruptions
in normal supply and distribution. However, with the significance
of the devastation in the New Orleans area and along the
Mississippi and Alabama Gulf Coast, it is too early to determine
the impact of Katrina on Kirby's 2005 third quarter and year
earnings. On a positive note, the Ohio River Valley received much
needed rain as a result of Katrina, alleviating the low water areas
on the Ohio and lower Mississippi Rivers. Kirby had been light
loading tank barges for destinations on these rivers for several
weeks." Kirby Corporation, based in Houston, Texas, operates inland
tank barges and towing vessels, transporting petrochemicals, black
oil products, refined petroleum products and agricultural chemicals
throughout the United States inland waterway system. Through the
diesel engine services segment, Kirby provides after-market service
for large medium-speed and high-speed diesel engines and reduction
gears used in marine, power generation and railroad applications.
Statements contained in this press release with respect to the
future are forward-looking statements. These statements reflect
management's reasonable judgment 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 timing, magnitude and number of acquisitions made
by Kirby. Forward-looking statements are based on currently
available information and Kirby assumes no obligation to update any
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,
2004, filed with the Securities and Exchange Commission.
DATASOURCE: Kirby Corporation CONTACT: Steve Holcomb of Kirby
Corporation, +1-713-435-1135 Web site: http://www.kirbycorp.com/
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