San Diego, CA -- (SBWIRE) -- 07/02/2012 -- An investigation on behalf of investors in Kirby Corporation (NYSE:KEX) shares over potential securities laws violations by certain officers and directors at Kirby Corporation in connection with certain financial statements was announced.
Investors who purchased shares of Kirby Corporation (NYSE:KEX), have certain options and should contact the Shareholders Foundation.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Kirby Corporation (NYSE:KEX) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements about Kirby’s business, its prospects and its operations were potentially materially false and misleading at the time they were made.
Kirby’s annual Revenue rose between 2008 and 2011 from $1.36billion to $1.85billion and its Net Income increased from $157.17million to $181.03million.
In March 2011, Kirby Corporation announced that it entered into a merger agreement with K-Sea Transportation Partners L.P. (“K-Sea”) (NYSE:KSP), an operator of tank barges and tugboats participating in the coastwise transportation primarily of refined petroleum products in the United States.
Kirby’s Chief Executive Officer stated “K-Sea is uniquely well positioned within the U.S. coastwise tank barge business, and will be a terrific complement to Kirby’s existing inland tank barge transportation service. With one of the youngest and largest fleets in its sector, K-Sea stands to benefit from the retirement of older tank barges in the coastwise trade, so we believe that the timing of this transaction is very favorable. K-Sea is a great foundation from which to expand our liquid transportation business into the U.S. Jones Act coastwise trade and better serve our customers. K-Sea has a very strong management team led by Tim Casey, great customer relationships, and a good operating reputation in the industry.”
Kirby’s Chief Executive Officer also stated for “2012, we expect a positive contribution to earnings from K-Sea’s operations.”
The merger closed on July 1, 2011.
Shares of Kirby Corporation (NYSE:KEX) grew from as low as $19.95 per share in March 2009 to as high as $69.99 per share in March 2012.
However, then on June 22, 2012, Kirby Corporation that “[s]ince the purchase of the coastal fleet in July 2011, Kirby has determined that the fleet was not maintained to Kirby’s standards and as a result additional funds must be spent to bring this equipment up to Kirby standards, some of which will be capitalized and some expensed. The estimated amount to be expensed and lost revenue days will impact earnings by $.08 per share for 2012, $.02 in the second quarter. Also, during the second quarter the Northeast and New York Harbors markets softened, resulting in lower equipment utilization levels and more competitive bidding for available movements.
Since March 2012 NYSE:KEX shares loss significant value and fell from almost $70 to as low as $45.45 per share on June 25, 2012.
On June 29, 2012, NYSE:KEX shares closed at $47.08 per share.
Those who purchased shares of Kirby Corporation (NYSE:KEX), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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