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Analysts: Flooding to sap barge builder

Jennifer Whitson
June 18, 2008
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Flooding on the Mississippi River will wipe out second-quarter profit for American Commercial Lines Inc., analysts at Stifel Nicolaus said in a report yesterday.

Stifel Nicolaus had anticipated profit of 10 cents a share; now, the analysts expect the company to only break even.

American Commercial Lines, which is headquartered in the Ohio River town of Jeffersonville, builds barges and ships ethanol and other products.

In the first quarter, the company turned a $2.3 million profit on revenue of $270.5 million.

Flooding has forced the closure of many locks on the upper Mississippi - affecting 10 percent to 15 percent of the company's fleet of dry-cargo barges, Stifel Nicolaus said.

The firm maintained its "buy" rating but decreased the target price of its stock by $1, to $18 per share.

Shares fell 3.9 percent this morning to $11.95.

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  1. So as I read this the one question that continues to come to me to ask is. Didn't Indiana only have a couple of exchanges for people to opt into which were very high because we really didn't want to expect the plan. So was this study done during that time and if so then I can understand these numbers. I also understand that we have now opened up for more options for hoosiers to choose from. Please correct if I'm wrong and if I'm not why was this not part of the story so that true overview could be taken away and not just parts of it to continue this negative tone against the ACA. I look forward to the clarity.

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