Reuters: Global Markets: Kirby shares fall on outlook cut

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Kirby shares fall on outlook cut Jun 25th 2012, 14:30 Mon Jun 25, 2012 10:30am EDT (Reuters) - Shares of Kirby Corp (KEX.N) fell 16 percent on Monday morning after the largest U.S. inland barge operator cut 2012 profit forecast as lower natural gas prices hurt demand at one of its manufacturing units. The stock fell to a one-and-a half year low of $42.79, making it one of the top losers on the Nasdaq. Kirby said it expects to earn $3.45 to $3.70 per share in 2012, lower than its prior forecast of $3.85 to $4.05 per share. The company's unit United Holdings, which it bought in February last year, received fewer orders for manufacturing hydraulic fracturing units due to lower natural gas drilling, the company said. Natural gas prices fell to a 10-year low of $1.902 twice in late April and were at $2.71 on Monday. The problems at the unit will hurt the company's 2012 profit by 15 to 18 cents a share, a company executive said on a conference call on Monday. "The deteriorating manufacturing demand for oilfield service equipment has certainly been a risk as gas prices have plummeted and drilling eases, but the speed and magnitude of the softening have been worse than projected," Evercore partners analyst Jonathan Chappell said in a note to clients. Kirby also forecast lower second quarter profit in the range of 80 to 85 cents a share, compared with its prior view of a profit of 97 cents to $1.02. (Reporting by Divya Lad in Bangalore; Editing by Joyjeet Das) Link this Share this Digg this Email Reprints

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