8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 24, 2007

Kirby Corporation

(Exact name of registrant as specified in its charter)

Nevada	1-7615	74-1884980
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
55 Waugh Drive, Suite 1000		77007
Houston, Texas		(Zip Code)
(Address of principal executive offices)

Registrant’s telephone number, including area code:

(713) 435-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On January 24, 2007, Kirby Corporation (“Kirby”) issued a press release announcing earnings for the three months and year ended December 31, 2006. A copy of the press release is attached as Exhibit 99.1 to this report.

EBITDA, a non-GAAP financial measure, is used in the press release. Kirby defines EBITDA as net earnings before interest expense, taxes on income, depreciation and amortization. Kirby has historically evaluated its operating performance using numerous measures, one of which is EBITDA. EBITDA is presented because of its wide acceptance as a financial indicator. EBITDA is one of the performance measures used in Kirby’s incentive bonus plan. EBITDA is also used by rating agencies in determining Kirby’s credit rating and by analysts publishing research reports on Kirby, as well as by investors and investment bankers generally in valuing companies. A quantitative reconciliation of EBITDA to GAAP net earnings for the 2006 and 2005 fourth quarters and full years is included in the press release.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits:

99.1Press release dated January 24, 2007

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

KIRBY CORPORATION
(Registrant)
By:	/s/ Norman W. Nolen
	Norman W. Nolen
	Executive Vice President, Treasurer and Chief Financial Officer

Dated: January 25, 2007

EXHIBIT INDEX

Exhibit 99.1 Press release dated January 24, 2007

EX-99.1

KIRBY CORPORATION	Contact: Steve Holcomb
	713-435-1135

FOR IMMEDIATE RELEASE

KIRBY CORPORATION ANNOUNCES RECORD

2006 FOURTH QUARTER AND YEAR RESULTS

· 2006 fourth quarter earnings per share were $.45, an 18% increase compared with $.38 earned in the 2005 fourth quarter, despite a 31% increase in weather and navigational delays

· 2006 year earnings per share were $1.79, a 35% increase compared with $1.33 earned in the 2005 year

· 2007 first quarter earnings per share guidance is $.40 to $.45 versus $.43 earned in the 2006 first quarter

· 2007 year earnings per share guidance is $1.95 to $2.10 versus $1.79 earned in the 2006 year

Houston, Texas (January 24, 2007) - Kirby Corporation (“Kirby”) (NYSE:KEX) today announced record net earnings for the fourth quarter ended December 31, 2006 of $23,938,000, or $.45 per share, compared with $19,770,000, or $.38 per share, for the fourth quarter of 2005. Consolidated revenues for the 2006 fourth quarter were $251,411,000, an 18% increase compared with $213,261,000 for the 2005 fourth quarter.

Kirby reported record net earnings for the 2006 year of $95,451,000, or $1.79 per share, compared with $68,781,000, or $1.33 per share, for 2005. Consolidated revenues for the 2006 year were $984,218,000, a 24% increase compared with $795,722,000 for 2005.

Marine transportation revenues and operating income for the 2006 fourth quarter increased 9% and 10%, respectively, compared with the fourth quarter of 2005. For the 2006 year, revenues and operating income increased 18% and 28%, respectively, compared with 2005. The marine transportation operating margin for the 2006 fourth quarter was 19.4% compared with 19.3% for the fourth quarter of 2005. For the 2006 year, the operating margin improved to 19.0% compared with 17.4% for 2005.

The results for both periods reflected continued strong petrochemical, black oil products and refined products volumes and higher contract rate renewals. The 2006 fourth quarter results were negatively impacted by unfavorable winter weather conditions, principally fog and storm systems along the Gulf Coast during December. Delay days were 31% higher than the 2005 fourth quarter.

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Diesel engine services revenues and operating income for the 2006 fourth quarter increased 77% and 139%, respectively, compared with the 2005 fourth quarter. For the 2006 year, revenues and operating income increased 61% and 105%, respectively, compared with 2005. The record diesel engine services results reflected the accretive acquisition of Global Power Holding Company (“Global”) on June 7, 2006 and the acquisition of the assets of Marine Engine Specialists, Inc. (“MES”) on July 21, 2006, as well as continued strong marine, offshore oil service, power generation and railroad markets. Higher service rates and parts pricing implemented during 2005 and 2006 also positively impacted the 2006 operating results. During the 2006 fourth quarter, the diesel engine services segment did experience some expected seasonal softness in the Gulf Coast high-speed market. The operating margin for the 2006 fourth quarter was 13.4%, significantly higher than the 9.9% margin earned in the 2005 fourth quarter. For 2006, the operating margin improved to 14.9% compared with 11.7% for 2005.

Commenting on the 2006 fourth quarter and 2007 first quarter, Joe Pyne, Kirby’s President and Chief Executive Officer, said, “We are pleased with our fourth quarter performance despite record weather delays in December. Pricing continues to be strong in all our business segments. For the 2007 first quarter, we are forecasting net earnings per share in the $.40 to $.45 range compared with $.43 for the 2006 first quarter. We have repeatedly advised that the unusually favorable winter weather conditions we experienced in the 2006 first quarter would make the comparison with our 2007 first quarter guidance and actual results difficult. Our 2007 first quarter guidance range reflects typical volatile winter weather conditions, which historically decrease operating efficiencies and increase delay days. For the 2007 year, our guidance range is $1.95 to $2.10 per share, compared with 2006 net earnings of $1.79 per share. Capital spending guidance for 2007 is $135 to $145 million and includes approximately $65 million for the construction of 26 tank barges and six towboats. Delivery is scheduled throughout 2007 and into early 2008.”

This earnings press release includes marine transportation performance measures for both the 2006 and 2005 periods. The performance measures include ton miles, revenues per ton mile, towboats operated and delay days. Comparable performance measures for the 2005 and 2004 years and quarters are available at Kirby’s web site under the caption Performance Measurements in the Investor Relations section. Kirby’s homepage can be accessed by visiting www.kirbycorp.com.

A conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday, January 25, 2007 to discuss the 2006 fourth quarter and year, and the outlook for the 2007 first quarter and year. The conference call number is 888-328-2514 for domestic callers and 706-679-3262 for international callers. The leader’s name is Steve Holcomb. An audio playback will be available at 12:00 p.m. central time on January 25 through 6:00 p.m. on Friday, February 23, 2007, by dialing 800-642-1687 for domestic callers and 706-645-9291 for international callers. The conference ID number is 5997085. The conference call can also be accessed by visiting Kirby’s homepage at http://www.kirbycorp.com/ or at http://audioevent.mshow.com/318630/. A replay will be available on each of those web sites following the conference call.

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The financial and other information to be discussed in the conference call is available in this press release and in a Form 8-K filed with the Securities and Exchange Commission. This press release and the Form 8-K include a non-GAAP financial measure, EBITDA, which Kirby defines as net earnings before interest expense, taxes on income, depreciation and amortization. A reconciliation of EBITDA for the 2006 and 2005 fourth quarters and full years with GAAP net earnings for the same periods is included in the Condensed Consolidated Financial Information in this press release.

Kirby Corporation, based in Houston, Texas, operates inland tank barges and towing vessels, transporting petrochemicals, black oil products, refined petroleum products and agricultural chemicals throughout the United States inland waterway system. Kirby also owns and operates four ocean-going barge and tug units transporting dry-bulk commodities in United States coastwise trade. Through the diesel engine services segment, Kirby provides after-market service for large medium-speed and high-speed diesel engines and reduction gears used in marine, power generation and railroad applications.

Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management’s reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, changes in the Jones Act or in U.S. maritime policy and practice, fuel costs, interest rates, weather conditions, and timing, magnitude and number of acquisitions made by Kirby. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby’s annual report on Form 10-K for the year ended December 31, 2005, filed with the Securities and Exchange Commission.

CONFERENCE CALL INFORMATION
	Date:	Thursday, January 25, 2007	Leader:	Steve Holcomb
	Time:	10:00 a.m. central time	Passcode:	Kirby
	U.S.:	888-328-2514	Int’l:	706-679-3262
	Website:	http://www.kirbycorp.com or http://audioevent.mshow.com/318630

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A summary of the results for the fourth quarter and year follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
	Fourth Quarter						Year
	2006			2005			2006			2005
	(unaudited, $ in thousands except per share amounts)
Revenues:
Marine transportation	$	202,665		$	185,788		$	807,216		$	685,999
Diesel engine services		48,746			27,473			177,002			109,723
		251,411			213,261			984,218			795,722
Costs and expenses:
Costs of sales and operating expenses		159,954			136,796			631,334			515,255
Selling, general and administrative		28,128			23,861			107,728			88,648
Taxes, other than on income		2,947			2,972			12,826			12,270
Depreciation and amortization		17,102			14,735			64,396			57,405
Loss (gain) on disposition of assets		(239	)		(397	)		(1,436	)		(2,360	)
		207,892			177,967			814,848			671,218
Operating income		43,519			35,294			169,370			124,504
Equity in earnings of marine affiliates		66			534			707			1,933
Loss on debt retirement		-			-			-			(1,144	)
Other expense		(217	)		(229	)		(674	)		(1,388	)
Interest expense		(4,696	)		(3,527	)		(15,201	)		(12,783	)
Earnings before taxes on income		38,672			32,072			154,202			111,122
Provision for taxes on income		(14,734	)		(12,302	)		(58,751	)		(42,341	)
Net earnings	$	23,938		$	19,770		$	95,451		$	68,781
Net earnings per share of common stock:
Basic	$	.46		$	.39		$	1.82		$	1.37
Diluted	$	.45		$	.38		$	1.79		$	1.33
Common stock outstanding (in thousands):
Basic		52,610			51,072			52,476			50,224
Diluted		53,410			52,234			53,304			51,562

CONDENSED CONSOLIDATED FINANCIAL INFORMATION
	Fourth Quarter				Year
	2006		2005		2006		2005
	(unaudited, $ in thousands except per share amounts)
EBITDA: (1)
Net earnings	$	23,938	$	19,770	$	95,451	$	68,781
Interest expense		4,696		3,527		15,201		12,783
Provision for taxes on income		14,734		12,302		58,751		42,341
Depreciation and amortization		17,102		14,735		64,396		57,405
	$	60,470	$	50,334	$	233,799	$	181,310
Capital expenditures	$	29,015	$	29,165	$	139,129	$	122,283
Acquisitions of businesses and marine equipment	$	4,486	$	500	$	143,911	$	7,500

	December 31,
	2006			2005
	(unaudited, $ in thousands)
Long-term debt, including current portion	$	310,362		$	200,036
Stockholders’ equity	$	631,995		$	537,542
Debt to capitalization ratio		32.9	%		27.1	%

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MARINE TRANSPORTATION STATEMENTS OF EARNINGS
	Fourth Quarter						Year
	2006			2005			2006			2005
	(unaudited, $ in thousands)
Marine transportation revenues	$	202,665		$	185,788		$	807,216		$	685,999
Costs and expenses:
Costs of sales and operating expenses		125,276			115,932			506,353			433,155
Selling, general and administrative		19,320			17,517			75,326			67,752
Taxes, other than on income		2,850			2,443			12,003			11,327
Depreciation and amortization		15,846			13,953			60,309			54,474
		163,292			149,845			653,991			566,708
Operating income	$	39,373		$	35,943		$	153,225		$	119,291
Operating margins		19.4	%		19.3	%		19.0	%		17.4	%

DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
	Fourth Quarter						Year
	2006			2005			2006			2005
	(unaudited, $ in thousands)
Diesel engine services revenues	$	48,746		$	27,473		$	177,002		$	109,723
Costs and expenses:
Costs of sales and operating expenses		34,678			20,864			124,971			82,095
Selling, general and administrative		6,515			3,428			22,665			13,169
Taxes, other than income		170			115			513			411
Depreciation and amortization		841			333			2,479			1,174
		42,204			24,740			150,628			96,849
Operating income	$	6,542		$	2,733		$	26,374		$	12,874
Operating margins		13.4	%		9.9	%		14.9	%		11.7	%

OTHER COSTS AND EXPENSES
	Fourth Quarter						Year
	2006			2005			2006			2005
	(unaudited, $ in thousands)
General corporate expenses	$	2,635		$	3,779		$	11,665		$	10,021
Gain on disposition of assets	$	(239	)	$	(397	)	$	(1,436	)	$	(2,360	)

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MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
	Fourth Quarter				Year
	2006		2005		2006		2005
Ton Miles (in millions) (2)		3,713		4,241		15,649		16,141
Revenue/Ton Mile (cents/tm) (3)		5.2		4.4		4.9		4.3
Towboats operated (average) (4)		243		242		241		242
Delay Days (5)		2,440		1,863		7,489		9,022
Average cost per gallon of fuel consumed	$	1.79	$	2.03	$	1.93	$	1.67
Tank barges:
Active						904		897
Inactive						54		67
Barrel capacities (in millions):
Active						17.0		16.7
Inactive						1.0		1.3

⁽¹⁾ Kirby has historically evaluated its operating performance using numerous measures, one of which is EBITDA, a non-GAAP financial measure. Kirby defines EBITDA as net earnings before interest expense, taxes on income, depreciation and amortization. EBITDA is presented because of its wide acceptance as a financial indicator. EBITDA is one of the performance measures used in Kirby’s incentive bonus plan. EBITDA is also used by rating agencies in determining Kirby’s credit rating and by analysts publishing research reports on Kirby, as well as by investors and investment bankers generally in valuing companies. EBITDA is not a calculation based on generally accepted accounting principles and should not be considered as an alternative to, but should only be considered in conjunction with, Kirby’s GAAP financial information.

⁽²⁾ Ton miles indicate fleet productivity by measuring the distance (in miles) a loaded tank barge is moved. For example: A typical 30,000 barrel tank barge loaded with 3,300 tons of liquid cargo is moved 100 miles, thus generating 330,000 ton miles.

⁽³⁾ Inland marine transportation revenues divided by ton miles. Example: Fourth quarter 2006 inland marine revenues of $193,614,000 divided by 3,713,000,000 ton miles = 5.2 cents

⁽⁴⁾ Towboats operated are the average number of owned and chartered towboats operated during the period.

⁽⁵⁾ Delay days measures the lost time incurred by a tow (towboat and one or more tank barges) during transit. The measure includes transit delays caused by weather, lock congestion and other navigational factors.

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