HOUSTON (AP) -- Shares of barge operator Kirby Corp. tumbled more than 15 percent Monday after the company cut its profit expectations for the year.
The Houston company said late Friday that profits are expected to be lower due to a variety of factors.
Kirby said among the issues weighing on its results is that its engine services business has been hampered by "softness" in engine and transmission sales. In addition, new orders for hydraulic fracturing units fell more than expected, weighed by the low price of natural gas, which has resulted in a significant drop in natural gas shale formation exploration.
The company also dealing with higher costs and lower administrative savings, including unexpected maintenance costs in its Kirby Offshore Marine unit.
In addition, one of Kirby's major customers also has had a number of scheduled and unscheduled maintenance issues at multiple facilities.
Kirby cut its forecast for second-quarter profit to between 80 cents and 85 cents per share, down from a previous forecast of 97 cents to $1.02 per share.
Analysts, on average, were expecting profit of 89 cents per share, with estimates ranging from 80 cents to 99 cents.
It also cut its 2012 earnings forecast to between $3.45 and $3.70 per share, down from a prior forecast of between $3.85 and $4.05 per share.
Wall Street was expecting full-year profit of $3.76 per share, with estimates ranging from $3.52 to $4.02.
Kirby shares fell by $7.76, 15.2 percent, to $43.34 in morning trading.
