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Kirby completes S&S acquisition, reports on impact of hurricanes

Written by Nick Blenkey
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SEPTEMBER 13, 2017 — Kirby Corporation (NYSE: KEX) today reported the closing of the acquisition of substantially all of the assets and businesses of Stewart & Stevenson LLC for approximately $756.5 million, before post-closing adjustments.

Kirby, which is America’s largest domestic tank barge operator, also reported that, while Hurricanes Harvey and Irma caused little damage to its vessels and minor flooding to one facility, they had had an impact on operations.

“Harvey has significantly dislocated normal supply and distribution routes in our inland barge business,” said Kirby President and CEO David W. Grzebinski,. “Ports from Corpus Christi to Houston started closing on August 23, and began reopening on September 1. The storm also disrupted over 50% of U.S. petrochemical capacity and over 25% of refinery capacity, though many plants have returned to normal operations. Irma has also significantly disrupted our offshore business.”

“We expect lost revenues and costs associated with recovery efforts for both hurricanes to impact third quarter earnings by $0.06 – $0.08 per share,” Mr. Grzebinski continued. “For Harvey, the lost revenues have been partially offset by an increase in our vessel utilization as the U.S. Gulf Coast petrochemical and refinery complex returns to normal operations. As such, we believe third quarter earnings results will fall within our previously provided guidance range, although towards the low end after the negative impact from the storms.”

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