Kirby Corporation (KEX), The Dow Chemical Company (DOW): Can This Barge Operator Continue Growing?

However, the company has repositioned itself to be able to utilize its centrally located remanufacturing facility based in Oklahoma City to its full potential. It is close to the shales and land-based fracking machines are accessible within 24 hours. As a result, Kirby Corporation (NYSE:KEX)’s land based diesel engine repairs, refurbishment activities, and new builds for fracking machines, have begun to show moderate growth. The operating margin in the diesel engine segment improved to 6.9% in the first quarter, and is expected to rise to 7.5% by the fourth quarter of this year. This translates into revenue of $151.3 million in the fourth quarter of 2013, up 15% year-over-year.

Conclusion

The growth in the petrochemical market is helping Kirby Corporation (NYSE:KEX) grow its inland marine business. The increased oil production in the Eagle Ford shale play is giving a lot of strength to the company’s offshore marine business. After a rough second half of 2012, the diesel engine business has been going steady in the first half of 2013.

I recommend this stock as a Buy.

Madhukar Dubey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Can This Barge Operator Continue Growing? originally appeared on Fool.com.

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