US Kirby warns of earnings hit from Mississippi flooding

12 May 2011 15:28  [Source: ICIS news]

HOUSTON (ICIS)--The high water and flooding on the Mississippi River System will hurt earnings at chemical shipper and barge operator Kirby worse than expected, the company said on Thursday.

Kirby said it expects the negative impact on its 2011 second-quarter results to be more than $0.07/share, above its original estimate from 27 April of a $0.02-$0.07/share impact, as conditions have deteriorated since then.

"The current flooding conditions on the Mississippi River System and the anticipated closure of the Gulf Intracoastal Waterway will have a negative impact on our inland marine transportation operations and second quarter earnings,” CEO Joe Pyne said.

Until the flooding subsides and tank barge traffic resumes, it is not possible for Kirby to accurately assess the financial impact of the flooding, he added.

However, the majority of movements west of Morgan City on the Gulf Intracoastal Waterway, including the Lake Charles, Beaumont, Port Arthur, Houston and Corpus Christi areas are operating as usual, Pyne said.

Also, the upper Mississippi River and Illinois River have returned to normal navigation, he added.

“Based on current conditions, we anticipate the Ohio River to return to normal navigation in mid to late May, and the lower Mississippi River to return to normal navigation by the end of May or early June,” Pyne said.

By: Stefan Baumgarten
+1 713 525 2653

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