possible home In are and withdrawing guidance. recurrence COVID-XX, at morning, the this destruction or global stay There orders, full that press our including Bill. our US and you, of and depth our of duration XXXX for release announced Thank demand the magnitude services. are we of products the the we many year surrounding recession unknowns
day. situation that unprecedented is an This the changes by
manage to team situation management and is can to shareholders. this well-being focused our protect on You taking our of and customers, our employees, actions necessary be the the our suppliers our assured
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utilization has to the rates As XX% declined in range which of the earlier year. into the refinery week, XX% this in range compares
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levels. there marine are to our a mitigate In should of in reduction help factors activity inland number the that
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costs, to maximized. respect cost our aggressively With implementing utilization the with to measures business, and ensure across managing our demand including horsepower saving is we are align boat
closed beginning Lastly, the well, COVID-XX as Savage on of distancing. despite To and April. you presented extremely of date, is acquisition at being are social going the this we challenges integration by some aware,
fleets Savage synergies, I contribution cost pursuing to this a aggressively have expect are integrating We favorable will our together year. that and earnings
the the Overall many are downturn currently levels circumstances Well, approximately first unknowns the downturn to in of this day. If similar quarter. inland. utilization in is XX% there for barge see from a by XXXX, XXXX we could decline and seen are the changing
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do revenues barge coming market, In in expect we coastal decline to the the utilization and quarters.
in XX% under insulate term of the help coastal reductions from revenue. a material will approximately is revenue contract, which long business However, to
reduced demand an of has for barges resulted in in Since products March available the industry. the refined end of increase
slightly. Kirby’s result, a has spot utilization barge declined As
Additionally, labor periods larger in of shipyard for in vessels. shipyard of delays Kirby's constraints the some resulted some and result extended COVID-XX capacity have industry a as
coastal full aging anticipated as occur the barges activity coastal. transportation the announced, as previously well is will an starting have - and planned coal Kirby's to on in second quarter, retirement coastal which of [ph] for year As reductions adverse four in impact
by of XXXX will activity In to services, of the expect XX% we of many challenged likely market distribution and XX. as cutting the for most their extremely oil through duration our more gas spending and that and customers with XXXX be XXXX, or capital in compared
to representing few across to a With frac XX% XXX oil as decline growing, oil compared minimal this in onshore fleets, increasing could to this will expect calls of rapidly With as backdrop, fleets gas which as have well a activity could distribution decline inventories levels XX and XX predicted XXXX to businesses XXXX we analysts working and manufacturing rig for levels. the counts and as corresponds XXXX. the reduction as average. XX% little to to more shutdowns or the reduction XXX US rigs, In that US, our active see environment, in from
our expect the result demand, of In businesses will some environment. commercial as and we a reduced that industrial, recessionary see
However, trucking stable and well for the businesses Thermo expected to remain marine term. markets, commercial King as repair as refrigeration the relatively the near are
significant are the reduced to with bus markets and demand for major on-highway sector expected Florida. the particularly be in Northeast most in destinations - market impacts in our this The at in in repair, tourist on the
intensive customers spending impacted, capital be will projects. generation these for power that expect also large as We defer
managing cost near the quarter of to oil prices. impacted, continue impact COVID-XX the low will implement and time to Kirby and be take savings the services second restructuring we plans. structure expect to fully it make In our and the will and some financial adjustments cost most we actively is the distribution reduce term, as
state we breakeven reductions levels, full loss the magnitude a the margins it but will industrial. commercial segment of and will endeavour and activity of year, dependent the maintain at to be economy to the For in small on
for to segment a a the very the of a - the important requires expectations be it's cash actions, However, our D&S earnings year. Despite remember little D&S as drain reduced not business believe that result we will capital. result as
is well Kirby manage coronavirus. positioned summary, through impact of the to In
the situations Our emergency pandemic quickly hurricanes of our employees. to and on like preparedness safety plans allowed us business continuity history of waterway our throughout handling and and emergencies implement operations focus
market We transportation can have that business be changing term marine conditions. adjusted a with to quickly cost contracts solid a structure strong and
customer upcoming with Although River declined demand and helping. needs in outage weeks, recent storage now, remains activity lock for has Illinois sound major an the on
demand. have we we swift have aggressive oil D&S, falling and for taken structure In actions low our taking to adjust - and and are cost prices
costs any continue reductions. We activity to of will to manage our in the counter revenue further impact
$XXX history cash throughout cash liquidity position to proven have perspective, Kirby sight line We our in bank has of in to a and ample a very flow of are which liquidity. we believe flow million with million generation cycle. free clear we this a strong the we generating enhance free debt. flow reduce From use cash to $XXX year, will
Operator, prepared this concludes remarks. our
We ready are now to take questions.
