UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                                       
                            Washington, D.C. 20549
                                       
                                   Form 10-Q

                  Quarterly  report pursuant to  Section  13  or
[ X ]             15(d)  of the Securities and Exchange  Act  of
                  1934
                  
                  For the quarter ended September 30, 1995
                  
                  Transition  report pursuant to  Section  13  or
[   ]             15(d)  of  the Securities and Exchange  Act  of
                  1934
                  
 Commission File  1-7615
     Number
                                       
                               Kirby Corporation
______________________________________________________________________________
            (Exact name of registrant as specified in its charter)
                                       
             Nevada                                     74-1884980
_____________________________________       __________________________________
   (State or other jurisdiction of           (IRS Employer Identification No.)
   incorporation or organization)
                                       
 1775 St. James Place, Suite 300, Houston, TX                      77056-3453
______________________________________________________________________________
(Address of principal executive offices)                            (Zip Code)
                                       
                                (713) 629-9370
______________________________________________________________________________
             (Registrant's telephone number, including area code)
                                       
                                   No Change
______________________________________________________________________________
  (Former name, former address and former fiscal year, if changed since last
                                    report)

Indicate  by  check  mark whether the registrant: (1) has  filed  all  reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act  of
1934  during  the  preceding 12 months (or for such shorter  period  that  the
registrant  was  required to file such reports), and (2) has been  subject  to
such filing requirements for the past 90 days.

                        Yes  [ X ]          No   [   ]

The  number of shares outstanding of the registrant's Common Stock,  $.10  par
value per share, on November 10, 1995 was 26,384,566.

<PAGE>

                        PART 1 - FINANCIAL INFORMATION
                                       
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                                BALANCE SHEETS
                                  (Unaudited)
                                       
                                    ASSETS

<TABLE>
<CAPTION>                                       
                                           September     December
                                              30,           31,
                                             1995          1994
                                           --------     ---------
                                               ($ in thousands)
<S>                                        <C>            <C>  
Current assets:                                                 
  Cash and invested cash                   $    887         6,980
  Available-for-sale securities --                               
    short-term investments                   16,763         8,244
  Accounts and notes receivable, net of                          
    allowance for doubtful accounts          65,198        63,397
  Inventory - finished goods, at lower                           
    of average cost or market                 8,391         8,270
  Prepaid expenses                           13,262        13,661
  Deferred taxes                                795         1,324
                                            -------       -------
     Total current assets                   105,296       101,876
                                            -------       -------
Property and equipment, at cost             484,857       481,612
  Less allowance for depreciation           170,236       153,672
                                            -------       -------
                                            314,621       327,940
Investments in affiliates:                  -------       -------
  Insurance affiliate                        43,063        41,644
  Marine affiliates                           8,998           181
                                            -------       -------
                                             52,061        41,825
                                            -------       -------
Excess cost of consolidated subsidiaries      3,693         9,280
Noncompete agreements                         1,726         3,889
Sundry                                        8,322        12,731
                                            -------       -------
                                           $485,719       497,541
                                            =======       =======
</TABLE>

                                       
                                       
                                       
                                      
                                       
                                       
                                       
                                       
                                       
                See accompanying notes to financial statements.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                                BALANCE SHEETS
                                  (Unaudited)
                                       
                     LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>                                       
                                            September   December
                                               30,         31,
                                              1995        1994
                                            ---------   --------
                                              ($ in thousands)
<S>                                          <C>        <C>  
Current liabilities:                                           
    Current portion of long-term debt        $  5,676    10,962
    Accounts payable                           21,164    16,368
    Accrued liabilities                        36,738    37,531
    Deferred revenues                           7,093     8,294
                                              -------   -------
       Total current liabilities               70,671    73,155
                                              -------   -------
Long-term debt, less current portion          158,933   148,535
Deferred taxes                                 40,875    42,452
Other long-term liabilities                     7,076     7,998
                                              -------   -------
       Total liabilities                      277,555   272,140
                                              -------   -------
Contingencies and commitments                    --          --
Stockholders' equity:                                   
   Preferred stock, $1.00 par value per                     
     share.  Authorized 20,000,000 shares        --          --
   Common stock, $.10 par value per share.                     
     Authorized 60,000,000 shares, issued                      
     30,804,000 shares (30,782,000 at                          
     December 31, 1994)                         3,078     3,078
   Additional paid-in capital                 157,300   157,021
   Unrealized net gains (losses) in              
     value of investments                         814      (261)
   Retained earnings                           81,938    78,651
                                              -------   -------
                                              243,130   238,489
   Less cost of 3,925,000 shares in                            
     treasury (2,468,000 at                                    
     December 31, 1994)                        34,966    13,088
                                              -------   -------
                                              208,164   225,401
                                              -------   -------
                                             $485,719   497,541
                                              =======   =======
</TABLE>

                                       
                                       
                                       
                See accompanying notes to financial statements.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                            STATEMENTS OF EARNINGS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                   Three months      Nine months
                                      ended             ended
                                  September 30,     September 30,
                                 ---------------   ---------------
                                  1995     1994     1995     1994
                                 -------  ------   ------   ------
                                   ($ in thousands, except per
                                          share amounts)
<S>                             <C>       <C>     <C>      <C>
Revenues:                                                        
   Transportation               $ 91,058  77,338  253,344  224,750
   Diesel repair                  12,492  11,755   39,207   33,572
   Investment income                 663     444    1,574      945
   Gain (loss) on disposition                                     
     of assets                        98     316     (138)     552
                                 -------  ------  -------  -------
                                 104,311  89,853  293,987  259,819
                                 -------  ------  -------  -------
Costs and expenses:                                               
   Costs of sales and                                             
     operating expenses                                           
    (except as shown below)       70,034  62,783  198,414  178,971
   Selling, general and           
     administrative               10,525   8,545   30,397   28,784
   Taxes, other than on income     2,450   3,657    7,391   11,260
   Depreciation and amortization  10,042   8,232   29,441   23,714
   Impairment of long-lived                                   
     assets                       17,500    --     17,500     --
                                 -------  ------  -------  -------
                                 110,551  83,217  283,143  242,729
                                 -------  ------  -------  -------
       Operating income (loss)    (6,240)  6,636   10,844   17,090
Equity in earnings of                                             
   insurance affiliate             1,210   1,290    5,181    4,378
Equity in earnings of                                         
   marine affiliates                 884    --      1,469     --
Interest expense                  (3,252) (2,355)  (9,208)  (6,121)
                                 -------  ------  -------  -------                                
      Earnings (loss) before           
        taxes on income           (7,398)  5,571    8,286   15,347
Provision (benefit) for                                           
   taxes on income                  (800)  1,965    4,999    5,651
                                 -------  ------  -------  -------                                      
      Net earnings (loss)       $ (6,598)  3,606    3,287    9,696
                                 =======  ======  =======  =======
Earnings (loss) per share       $   (.24)    .13      .12      .34
   of common stock               =======  ======  =======  =======
</TABLE>

                                       
                See accompanying notes to financial statements.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                            STATEMENTS OF CASH FLOW
                                  (Unaudited)

<TABLE>
<CAPTION>                                       
                                                 Nine months ended
                                                   September 30,
                                                 -----------------
                                                   1995     1994
                                                 --------  -------
                                                  ($ in thousands)
<S>                                              <C>       <C> 
Net earnings                                     $  3,287     9,696
   Adjustments to reconcile net earnings to net                   
     cash provided by operating activities:
      Loss (gain) on disposition of assets            138      (552) 
      Depreciation and amortization                29,441    23,714
      Increase (decrease) in deferred taxes          (696)    4,951
      Deferred scheduled maintenance costs          5,409     2,076
      Equity in earnings of insurance affiliate    (5,181)   (4,378)
      Redemption from insurance affiliate           5,016     7,000
      Equity in earnings of marine affiliates      (1,469)      --
      Distributions from marine affiliates            867       --
      Impairment of long-lived assets              17,500       --
      Other noncash adjustments to earnings            33       125
      Decrease in cash flow from other changes                       
        in operating working capital               (7,651)   (8,764)
                                                  -------   -------
          Net cash provided by operating                          
            activities                             46,694    33,868
                                                  -------   -------
Cash flow from investing activities:                              
   Net decrease in investments                     (8,699)   (8,759)
   Capital expenditures                           (32,984)  (49,610)
   Proceeds from disposition of assets              1,190     2,572
                                                  -------   -------
          Net cash used in investing activities   (40,493)  (55,797)
                                                  -------   -------
Cash flow from financing activities:                              
   Borrowings on bank revolving credit loan       171,100   181,000
   Payments on bank revolving credit loan        (217,800) (145,500)
   Increase in long-term debt                      82,891      --
   Payments under long-term debt                  (26,534)   (9,724)
   Purchases of treasury stock                    (22,039)     (141)
   Proceeds from exercise of stock options             88       594
                                                  -------   -------
          Net cash provided (used)                                
            by financing activities               (12,294)   26,229
                                                  -------   -------
</TABLE>

                  Table continues on following page

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                            STATEMENTS OF CASH FLOW
                                  (Unaudited)


<TABLE>
<CAPTION>                                       
                                                 Nine months ended 
                                                   September 30,
                                                 ------------------
                                                    1995     1994
                                                 --------  --------
<S>                                                 <C>       <C>     
          Increase (decrease) in cash
            and invested cash                        (6,093)   4,300
Cash and invested cash, beginning of year             6,980    1,998
                                                     ------   ------

Cash and invested cash, end of period               $   887    6,298
                                                     ======   ======
                                                                   
Supplemental disclosures of cash flow                              
information:                                                       
   Cash paid during the period for:                                
      Interest                                      $ 6,145    5,436
      Income taxes                                  $ 4,000    5,450
</TABLE>

        
                               
                See accompanying notes to financial statements.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       

                         NOTES TO FINANCIAL STATEMENTS
                                       
                                       
      In  the  opinion  of  management, the accompanying  unaudited  financial
statements  of Kirby Corporation and consolidated subsidiaries (the "Company")
contain  all  adjustments  (consisting  of  only  normal  recurring  accruals)
necessary  to present fairly the financial position as of September  30,  1995
and  December 31, 1994, and the results of operations for the three months and
nine months ended September 30, 1995 and 1994.

(1)  BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS

      The  financial  statements included herein have  been  prepared  by  the
Company,  without  audit,  pursuant  to  the  rules  and  regulations  of  the
Securities  and Exchange Commission.  Although the Company believes  that  the
disclosures  are  adequate to make the information presented  not  misleading,
certain information and footnote disclosures, including significant accounting
policies, normally included in annual financial statements have been condensed
or omitted pursuant to such rules and regulations.  It is suggested that these
condensed  financial  statements  be read in conjunction  with  the  Company's
latest Annual Report on Form 10-K.

(2)  COMPARABILITY OF FINANCIAL STATEMENTS

      On July 18, 1995, Universal Insurance Company ("Universal") redeemed  $5
million of its common stock from the Company and sold $5 million of its common
stock  to  Eastern  America Insurance Group, Inc. ("Eastern  America  Group").
Such redemption and sale reduced the Company's ownership of Universal from 58%
to  47% and increased Eastern America Group's ownership of Universal from  42%
to  53%.  Based on the Company's ownership of Universal declining to 47%,  the
Company's  investment in Universal for the current period and  future  periods
will  be  accounted for under the equity method of accounting.   Prior  period
financial statements have been restated to reflect this change in accounting.

(3)  ADOPTION OF ACCOUNTING STANDARDS

      The  Financial Accounting Standards Board issued Statement of  Financial
Accounting  Standards No. 121 ("SFAS 121"), "Accounting for the Impairment  of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" in March  1995.
SFAS  121  establishes  standards  for the impairment  of  long-lived  assets,
certain identifiable intangibles related to those assets to be held and  used,
and  for long-lived assets and certain identifiable intangibles to be disposed
of.   Effective  September  30,  1995, the Company  adopted  SFAS  121.   This
adoption is earlier than the required deadline of the 1996 first quarter.


<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                         NOTES TO FINANCIAL STATEMENTS
                                       
                                       
(3)  ADOPTION OF ACCOUNTING STANDARDS, Continued

     As a result of the adoption of SFAS 121, the Company reduced the carrying
value  of  certain marine transportation equipment and related intangibles  by
taking  a $17,500,000 pre-tax, non-recurring charge in the 1995 third quarter.
The  after-tax effect of the charge was $13,000,000, or $.47 per  share.   The
Company  reviewed  long-term assets and certain identifiable  intangibles  for
impairment  by  division,  and  by vessel class  within  each  division.   For
purposes  of determining fair value, the Company estimated future  cash  flows
expected  to  be  generated, assuming the above groups, less the  future  cash
outflows expected to be necessary to obtain the inflows.

      An  analysis of the reductions of the carrying value of the assets  upon
adoption of SFAS 121 follows:


<TABLE>
<CAPTION>
                                                        After
                             Before        Adoption    adoption
                           adoption of      of SFAS     of SFAS
                            SFAS 121          121         121
                           ----------      --------    --------
                                     ($ in thousands)
<S>                           <C>         <C>            <C>
Offshore Transportation                           
Division:
   Break-bulk freighters:                            
     Freighters               $10,064       (6,366)       3,698
     Land and equipment         1,662         (783)         879
     Intangibles                9,525       (9,525)        --
                               ------      -------       ------
                               21,251      (16,674)       4,577
                                                               
    Tanker                      2,029         (693)       1,336
Inland Transportation                                          
  Division:
    Inland tank barges            164         (133)          31
                               ------       -------      ------
                              $23,444      (17,500)       5,944
                               ======       =======      ======
</TABLE>



<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                         NOTES TO FINANCIAL STATEMENTS
                                       
                                       

(4)  TAXES ON INCOME

      Earnings  (loss)  before taxes on income and details  of  the  provision
(benefit)  for  taxes  on income for the three months and  nine  months  ended
September 30, 1995 and 1994 were as follows:


<TABLE>
<CAPTION>
                          Three months          Nine months
                              ended                ended
                          September 30,        September 30,
                         ----------------     ----------------
                          1995      1994       1995      1994
                         -------   -------    -------   ------
                                     ($ in thousands)
<S>                      <C>       <C>        <C>         <C>                                        
Earnings (loss) before                                  
  taxes on income        $(7,398)    5,571     8,286      15,347
                          ======    ======    ======      ======
Provision (benefit) for                                  
  taxes on income:
    United States:                                       
         Current         $ 1,863    (1,747)    5,243      (1,298)
         Deferred         (3,394)    3,616    (1,141)      4,951
         State and                                       
           municipal         229        96       395         248
                          ------    ------    ------      ------
                          (1,302)    1,965     4,497       3,901
                          ------    ------    ------      ------
    Puerto Rico -                                        
      Current                502       --        502       1,750
                          ------    ------    ------      ------
                         $  (800)    1,965     4,999       5,651
                          ======    ======    ======      ======
</TABLE>


      The  effective  tax rate for the 1995 first nine months and  1995  third
quarter  was  significantly  higher than in prior  comparable  periods.   This
primarily resulted from the write-off of $4,600,000 in non-deductible goodwill
in  connection  with  the  Company's adoption of  SFAS  121.   Therefore,  the
effective  tax rate for both 1995 periods was above the expected 35% statutory
rate.


<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                         NOTES TO FINANCIAL STATEMENTS
                                       

(5)  LONG-TERM DEBT

     In December 1994, the Company established a $250,000,000 medium term note
program  providing for the issuance  of fixed rate or floating rate notes with
maturities  of  nine  months  or longer.    The  shelf  registration  program,
registered with the Securities and Exchange Commission, was activated in March
1995 with  the issuance  of  $34,000,000 of the authorized notes.   The issued
medium  term  notes  bear  interest at an average  fixed  rate of 7.77% with a
maturity  of  March 10, 1997.   Proceeds  from  sale of the notes were used to
retire the  Company's outstanding  bank term loan in the amount of $10,286,000
due June 1, 1997  and to reduce the  Company's  outstanding  revolving  credit
loans by $23,714,000.   The Company's outstanding bank term loan in the amount
of  $10,666,000, due March 6, 1997, was retired on March 20, 1995 with proceeds
borrowed under  the Company's revolving  credit agreements.  In June 1995, the
Company issued $45,000,000 of authorized notes,  bearing a fixed interest rate
of 7.25%,  with a maturity  of  June 1, 2000.   Proceeds from the  sale of the
notes  were used to reduce  the Company's outstanding  revolving credit loans.
The  remaining  $171,000,000  available under the medium  term note program is
available to provide financing for future business and equipment acquisitions,
and working capital requirements.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
 
                   Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       
Results of Operations

      The Company reported net earnings of $3,287,000, or $.12 per share,  for
the  first  nine months of 1995, compared with $9,696,000, or $.34 per  share,
for  the  first nine months of 1994.  For the 1995 third quarter, the  Company
reported  a  net  loss  of $6,598,000, or $.24 per share,  compared  with  net
earnings of $3,606,000, or $.13 per share, for the 1994 third quarter.

      The  Company adopted SFAS 121, Impairment of Long-Lived Assets  and  for
Long-Lived  Assets  to Be Disposed Of, effective September  30,  1995.   As  a
result of the adoption of SFAS 121, the Company reduced the carrying value  of
certain  marine transportation equipment and related intangibles by  taking  a
$17,500,000  pre-tax,  non-recurring charge in the 1995  third  quarter.   The
after-tax  effect  of  the charge was $13,000,000, or  $.47  per  share.   The
Company  reviewed  long-term assets and certain identifiable  intangibles  for
impairment  by  division,  and  by vessel class  within  each  division.   For
purposes  of determining fair value, the Company estimated future  cash  flows
expected  to be generated, assuming the above groupings, less the future  cash
outflows expected to be necessary to obtain the inflows.

Marine Transportation

      As  a provider of service for both the inland and offshore United States
markets,  the  marine transportation segment is divided into  three  divisions
organized  around  the  markets  they serve:  the  Inland  Chemical  Division,
serving  the inland industrial and agricultural chemical markets;  the  Inland
Refined Products Division, serving the inland refined products market; and the
Offshore  Division,  which serves the offshore petroleum products,  container,
dry-bulk  and  palletized cargo markets.  A division analysis  of  the  marine
transportation segment follows:

Marine Transportation - Inland Divisions

      The  Inland  Chemical  and  Refined Products  Divisions'  transportation
revenues for the 1995 first nine months totaled $178,453,000, reflecting a 21%
increase  compared  with $148,081,000 reported for the first  nine  months  of
1994.   Third  quarter  1995 transportation revenues totaled  $63,402,000,  an
increase of 19% when compared with third quarter 1994 revenues of $53,390,000.
The  acquisition from The Dow Chemical Company ("Dow") in November 1994 of  65
inland tank barges, the assumption of the lease of 31 inland tank barges  from
Dow  and  the  accompanying ten year contract with Dow to provide inland  bulk
liquid  marine  transportation services, contributed to the  majority  of  the
increase in revenues for each comparable period.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       

                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       
                                       
Results of Operations, Continued

      Equipment  utilization  in  the  Inland Chemical  and  Refined  Products
Divisions remained stable during the 1995 first nine months and third quarter.
The  Inland Chemical Division, with over 80% of its movements under  long-term
contracts,  benefited  during both periods from contract  renewals  at  higher
rates  and  continued  operating efficiencies.  The Dow fleet  acquisition  is
being  integrated  into the fleet and the fleet is operating more  efficiently
than during the first  half of the 1995 year.

      The  Inland  Refined Products Divisions' third quarter  movements,  with
approximately 50% under long-term contract, benefited from the summer  driving
season.  Additional refinery capacity and pipeline efficiencies in the Midwest
resulted in lower rates and a slight decrease in movements when compared  with
the 1994 third quarter and nine months.

      Movements of liquid fertilizer and anhydrous ammonia, through the Inland
Chemical   Division,  were  as  predicted  during  the  1995  third   quarter.
Typically,  fertilizer is applied in the spring with terminals  resupplied  in
the  fall;  therefore,  July and August are slow periods;  however,  with  the
closure  of  the  Upper  Mississippi River System from flooding  from  May  19
through June 9, the spring fertilizer season was extended.  September  is  the
normal beginning of the fall fertilizer season.

      During  the majority of the 1995 third quarter, the Illinois  River  was
closed for lock repairs, thereby negatively affecting the results of both  the
Inland   Chemical  and  Refined  Products  Divisions.   In  addition,  several
hurricanes negatively affected both divisions' Gulf Coast operations.

      Costs  and expenses, excluding interest expense, for the Inland Chemical
and  Refined  Products  Divisions  for the  1995  first  nine  months  totaled
$151,073,000, reflecting an 18% increase over the 1994 first nine months total
of  $127,792,000.   Third quarter 1995 costs and expenses, excluding  interest
expense,  totaled  $51,710,000, an increase of 16% over  the  comparable  1994
third  quarter when costs and expenses totaled $44,583,000.  The increase  for
both  comparable periods reflects the costs and expenses associated  with  the
operation  of  the  Dow  equipment acquired  in  November  1994,  as  well  as
inflationary increases in costs and expenses.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       

Results of Operations, Continued

      The Inland Chemical and Refined Products Divisions' operating income for
the  1995  first nine months totaled $27,471,000, an increase of 30%  compared
with 1994 first nine months operating income of $21,155,000.  Operating income
for the 1995 third quarter increased 27% to $11,852,000 when compared with  an
operating income of $9,321,000 for the 1994 third quarter.  Operating  margins
for  the 1995 first nine months increased to 15.4% compared with 14.3% for the
first nine months of 1994.  Operating margins for the 1995 third quarter  also
improved to 18.7% compared with 17.5% recorded for the 1994 third quarter.

Marine Transportation - Offshore Division

      Transportation revenues from the Offshore Division for  the  1995  first
nine  months  totaled  $74,891,000, reflecting a  2%  decrease  compared  with
$76,669,000  reported for the first nine months of 1994.  Third  quarter  1995
Offshore Division transportation revenues totaled $27,656,000, an increase  of
15% compared with $23,948,000 reported for the 1994 third quarter.

      With  five  of  the  Company's nine tankers  operating  under  long-term
contracts  at adequate rates, the four remaining tankers operated sporadically
in  the  spot market at inadequate rates.  During the 1995 third quarter,  one
spot  market  tanker  was  laid  up,  as current  rates  did  not  justify  an
anticipated  expenditure of approximately $1,000,000 to maintain the  vessel's
operating  certificate.  The laid-up tanker has an Oil Pollution Act  of  1990
expiration  date  of  October 1996.  In anticipation of the  idle  tanker  not
returning to service effective September 30, 1995, the tanker was written-down
to  scrap  steel  value upon the adoption of SFAS 121.  Although  tanker  spot
market  rates  are inadequate, the Offshore Division's liquid  tanker  segment
contributed  $2,068,000 to the Company's operating income for the  1995  first
nine months and $181,000 of operating income for the 1995 third quarter.


<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       

Results of Operations, Continued

      Movements for the transportation of food aid and related products  under
the  United  States  Government's preference aid cargo programs  and  military
cargo  movements allowed the Company's three freighters to be  fully  utilized
during  the 1995 third quarter.  However, during the first half of  1995,  all
three  freighters operating in this market have been laid-up at various  times
of  the  year  due  to  the market's excess equipment capacity.   Such  excess
capacity  and  lack  of  available  cargo have  resulted  in  rates  that  are
inadequate to achieve operating profitability.  Freight rates, which have been
depressed  since 1994, are not expected to recover to levels which will  allow
the  three  freighters  to  make  consistent contributions  to  the  Company's
earnings in the future.  With the adoption of SFAS 121, the Company wrote down
the  carrying  value of the three freighters and related intangibles  to  fair
market  value  in the 1995 third quarter.  The Offshore Division's  preference
and  military  cargo segment suffered operating losses of $2,989,000  for  the
1995  first  nine months and $836,000 of operating losses for the  1995  third
quarter, excluding the effects of the previously mentioned write-down.

     Costs and expenses, excluding interest expense, for the Offshore Division
for  the 1995 first nine months totaled $74,839,000, a decrease of 4% compared
with $78,233,000 for corresponding 1994 first nine months.  Third quarter 1995
costs  and  expenses,  excluding  interest expense,  totaled  $28,318,000,  an
increase  of 6% compared with $26,774,000 reported for the 1994 third quarter.
The  4%  decrease  in costs and expenses when comparing the  1995  first  nine
months  with the 1994 corresponding period primarily resulted from the  lay-up
of  the  three  break-bulk freighters during the 1995 second quarter  and  the
continued  weakness  in both the offshore liquid spot  market  and  dry  cargo
markets.   The 6% increase for the 1995 third quarter compared with  the  1994
third  quarter resulted from the full employment of the break-bulk  freighters
during the 1995 third quarter and the lay-up of as many as six liquid offshore
vessels during the 1994 third quarter.

      For the 1995 first nine months, the Offshore Division recorded operating
income  of  $160,000  compared with an operating loss of  $1,700,000  for  the
corresponding  1994  first  nine months.  For  the  1995  third  quarter,  the
Offshore  Division recorded an operating loss of $660,000,  compared  with  an
operating  loss  of $2,960,000 for the 1994 third quarter.  Operating  margins
for  the  1995 first nine months were essentially break-even compared  with  a
negative 2.2% for the 1994 first nine months.  Operating margins for the  1995
third  quarter totaled a negative 2.4% compared with a negative 12.4% for  the
1994 third quarter.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       
                                       
Results of Operations, Continued

      The  Company's investment in two marine transportation partnerships  are
accounted  for  following the equity method of accounting for the  1995  first
nine  months and third quarter.  Such investment for the corresponding periods
of  the  1994 year was accounted for following the pro-rata method  (recording
the  pro-rata share of the assets, liabilities, revenues and expenses  of  the
partnerships).  The Company recorded equity in earnings of $1,469,000 for  the
1995  nine  months  and  $884,000  for  the  1995  third  quarter.   For   the
corresponding periods of the 1994 year, the Company recorded pre-tax  earnings
from  the  partnerships of $1,823,000 for the first nine months and $1,008,000
for  the  third  quarter.   The components of such prior  year  earnings  were
recorded pro-rata throughout the Statements of Earnings.  The decline for both
comparable  periods  reflect  the low rates for preference  aid  movements,  a
market  in  which  the partnerships participate, in addition to  its  contract
movements of coal and limestone rock.

Diesel Repair

      The  Company's  diesel repair segment reported diesel repair  and  parts
sales revenues of $39,207,000 for the 1995 first nine months, reflecting a 17%
increase  compared with $33,572,000 reported for the 1994 first  nine  months.
Third  quarter 1995 revenues totaled $12,492,000, an increase of  6%  compared
with 1994 third quarter revenues of $11,755,000.

      The diesel repair segment is divided into two divisions organized around
the  marine  and rail markets.  The Marine Diesel Repair Division operates  on
all  three  coasts and in the Midwest through five facilities that repair  and
overhaul marine diesel engines and reduction gears, and sell related parts and
accessories.   The  Rail  Diesel Repair Division provides  replacement  parts,
service and support nationwide to shortline railroads and industrial companies
that operate locomotives.

      The  Marine  Diesel Repair Division's revenues for the 1995  first  nine
months  totaled $31,720,000, an increase of 16% compared with the  1994  first
nine  months' revenues of $27,288,000.  Third quarter 1995 revenues  increased
3% to $9,786,000 compared with $9,516,000 reported for the 1994 third quarter.
The  Gulf Coast and Midwest markets benefited from the general health  of  the
inland  tank barge industry, the main customer base for such markets.   During
the  late  1995 third quarter, the repair portion of such markets declined  to
some degree; however, such repair business has rebounded during the early 1995
fourth   quarter.   The  East  Coast  market  remained  stable  from  military
customers;  however, the West Coast market has experienced peaks  and  valleys
from the slowly rebounding tuna fishing industry.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       

Results of Operations, Continued

     The Rail Diesel Repair Division reported revenues for the 1995 first nine
months  of  $7,487,000, an increase of 19% compared with the 1994  first  nine
months   revenues   of  $6,284,000.   Third  quarter  1995  revenues   totaled
$2,706,000, an increase of 21% compared with $2,239,000 reported for the  1994
third   quarter.    Operations  continue  to  expand  since   the   Division's
commencement in January 1994.  The Rail Diesel Repair Division serves  as  the
exclusive  distributor to shortline and industrial railroads  for  aftermarket
parts and service for the Electro-Motive Division of General Motors.

      Costs  and  expenses, excluding interest expense, for the diesel  repair
segment  totaled  $36,494,000, an increase of 16%  compared  with  $31,331,000
reported  for  the  1994  first nine months.  Third  quarter  1995  costs  and
expenses, excluding interest expense, equaled $11,657,000, an increase  of  7%
over the comparable 1994 third quarter of $10,845,000.  The increases for both
comparable  periods  reflect the continued growth in  revenues  from  the  two
diesel repair divisions, as well as inflationary growth in costs and expenses.

      The  diesel  repair segment's operating income for the 1995  first  nine
months  totaled $2,793,000, an increase of 21% compared with 1994  first  nine
months  operating  income of $2,301,000.  Third quarter 1995 operating  income
decreased  9% to $853,000 compared with $935,000 reported for the  1994  third
quarter.   Operating  margins  for the 1995 first  nine  months  equaled  7.1%
compared  with  6.9%  for the corresponding 1994 period.  Third  quarter  1995
operating margins totaled 6.8% compared with 8.0% reported for the 1994  third
quarter.

Property and Casualty Insurance

      The  Company's  investment  in Universal, a full  service  property  and
casualty insurance company operating exclusively in the Commonwealth of Puerto
Rico, is accounted for under the equity in earnings method of accounting.

      On July 18, 1995, Universal redeemed $5,000,000 of its common stock from
the  Company and sold $5,000,000 of its common stock to Eastern America Group.
Such  redemption and sale lowered the Company's voting ownership in  Universal
from  58%  to  47% and increased Eastern America Group's voting  ownership  in
Universal  from  42%  to  53%.  See "Note 2" to the  notes  to  the  financial
statements included elsewhere herein for further disclosures on the  Universal
redemption  and  sale of its common stock, and the effects  of  the  Company's
voting ownership in Universal being decreased to 47%.


<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       
                                       
Results of Operations, Continued

      The  Company recorded equity in earnings of insurance affiliate for  the
1995  first  nine  months of $5,181,000 compared with $4,378,000  of  restated
equity in earnings for the corresponding 1994 period.  Third quarter equity in
earnings  of  insurance affiliate totaled $1,210,000 compared with  $1,290,000
for  the 1994 third quarter.  The amount recorded by the Company as equity  in
earnings for the Company's investment in Universal is influenced to the extent
that  anticipated future redemptions by Universal of its common stock  exceeds
the  Company's  investment in Universal's stock.   The  Company  also  has  an
investment  in  Universal's  nonvoting preferred stock  (100%).   Because  the
preferred  stock  is collateralized by a separate portfolio of  U.S.  Treasury
Securities,  the  Company accounts for this preferred stock  under  SFAS  115.
Therefore, the interest earned, as well as the realized gains from the sale of
U.S. Treasury Securities collateralizing the preferred stock, are included  as
part  of  equity  in earnings of insurance affiliate.  During the  1995  third
quarter,  the Company recognized $650,000 of realized gains from the  sale  of
such  U.S.  Treasury Securities, which are included in equity in  earnings  of
insurance affiliate.

Corporate Expenses

     Interest expense for the 1995 first nine months totaled $9,208,000, a 50%
increase  compared  with $6,121,000 reported for the 1994 first  nine  months.
Third   quarter  1995  interest  expense  totaled  $3,252,000  compared   with
$2,355,000  for the 1994 third quarter, reflecting an increase of  38%.   Such
increase  represents  interest  on debt incurred  to  finance  the  Dow  asset
acquisition  in  November 1994, the four tankers acquired  in  July  1994  and
$22,039,000 of treasury stock acquired during the 1995 first nine  months,  of
which $10,295,000 was acquired during the 1995 third quarter.
                                       
Provision for Taxes on Income

      The  effective  tax rate for the 1995 first nine months and  1995  third
quarter  was  significantly  higher than in prior  comparable  periods.   This
primarily resulted from the write-off of $4,600,000 in non-deductible goodwill
in  connection  with  the  Company's adoption of  SFAS  121.   Therefore,  the
effective  tax rate for both 1995 periods was above the expected 35% statutory
rate.

<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       

Financial Condition, Capital Resources and Liquidity

Treasury Stock Purchases

      From  April  24,  1995 through October 31, 1995, the  Company  purchased
1,974,020  shares  of  common stock at a total price of  $29,497,000,  for  an
average  price  of  $14.94.   On  October 17, 1995,  the  Board  of  Directors
increased  the  Company's common stock repurchase authorization  to  4,250,000
shares,  an  increase  of 2,250,000 over the 2,000,000  shares  authorized  in
August  1994.  The Company is authorized to purchase its common stock  on  the
American  Stock  Exchange  and  in privately  negotiated  transactions.   When
purchasing  its common stock, the Company is subject to price, trading  volume
and  other market considerations.  Shares purchased may be used for reissuance
upon  the exercise of stock options, in future acquisitions for stock  or  for
other appropriate corporate purposes.

Long-Term Financing

     In December 1994, the Company established a $250,000,000 medium term note
program  providing for the issuance of fixed rate or floating rate notes  with
the  maturities  of  nine months or longer.  The shelf  registration  program,
registered with the Securities and Exchange Commission, was activated in March
1995  with  the issuance of $34,000,000 of the authorized notes.   The  issued
medium  term  notes bear interest at an average fixed rate  of  7.77%  with  a
maturity  of  March 10, 1997.  Proceeds from sale of the notes  were  used  to
retire  the  Company's outstanding bank term loan in the amount of $10,286,000
due  June  1,  1997  and to reduce the Company's outstanding revolving  credit
loans  by $23,714,000.  The Company's outstanding bank term loan in the amount
of $10,666,000, due March 6, 1997, was retired on March 20, 1995 with proceeds
borrowed  under the Company's revolving credit agreements.  In June 1995,  the
Company issued $45,000,000 of authorized notes, bearing a fixed interest  rate
of  7.25%,  with a maturity of June 1, 2000.  Proceeds from the  sale  of  the
notes  were  used to reduce the Company's outstanding revolving credit  loans.
The  remaining $171,000,000  available under the medium term note program will
provide  financing for future business and equipment acquisitions and  working
capital requirements.


<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                       

Financial Condition, Capital Resources and Liquidity, Continued

Capital Expenditures

      In May 1994, the Company entered into a contract for the construction of
12  double  skin  29,000 barrel capacity inland tank barges  for  use  in  the
movement of industrial chemicals and refined products.  In February 1995,  the
Company  exercised  the option under the contract to construct  12  additional
barges.    Since  January  1995,  the  Company  has  received   nine   barges,
approximately one each month, and the remaining 15 barges are scheduled to  be
delivered  one each month thereafter.  A third option for the construction  of
12 additional barges was canceled.  The new construction program is consistent
with  the  Company's long-term strategy of upgrading its equipment to  service
the needs of its customers and to enhance its market position.

Liquidity

      The  Company has generated net cash provided by operating activities  of
$46,694,000  for  the first nine months of 1995 compared with $33,868,000  for
the comparable 1994 period.  Such funds are available for capital construction
projects,   treasury  stock  purchases,  asset  acquisitions,   repayment   of
borrowings  associated  with  asset  acquisitions  and  for  other   operating
requirements.  In addition to its cash flow provided by operating  activities,
the  Company also has available as of November 8, 1995 $45,700,000  under  its
revolving  credit agreement and $171,000,000 available under its  medium  term
note program.

      During  each  year, inflation has had a relatively minor effect  on  the
financial results of the Company.  The marine transportation segment has long-
term contracts which generally contain cost escalation clauses whereby certain
costs,  including  fuel,  can be passed through to its  customers,  while  the
transportation assets acquired and accounted for using the purchase method  of
accounting were adjusted to a fair market value and, therefore, the cumulative
long-term  effect on inflation was reduced.  The repair portion of the  diesel
repair segment is based on prevailing current market rates.

     The Company has no present plan to pay dividends on its common stock.


<PAGE>
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                                       

 
                         PART II - OTHER INFORMATION
                                       

Item 1.   Legal Proceedings

       For  a  detailed explanation of the material pending legal  proceedings
against the Company, please refer to the Form 10-K for the year ended December
31, 1994.


Item 6.   Exhibits and Reports on Form 8-K

(a)  Exhibits:

     11.0  Computation of Earnings per Common Share.

     27.0  Financial Data Schedule

(b)  Reports on Form 8-K:

     There  were  no  reports  on Form 8-K filed for  the  nine  months  ended
     September 30, 1995.





                                  SIGNATURES

      Pursuant to the requirements of the Securities and 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/ G. Stephen Holcomb
                                        ----------------------------   
                                        G. Stephen Holcomb
                                        Vice President and Controller

Dated:   November 13, 1995






EXHIBIT 11.0

         KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

            COMPUTATION OF EARNINGS PER COMMON SHARE


<TABLE>
<CAPTION>
                                 Three months ended       Nine months
                                   September 30,       ended September 30,
                                -------------------    -------------------
                                1995          1994      1995        1994
                                -------------------    -------------------
                                 ($ in thousands, except per share
                                             amounts)
<S>                             <C>         <C>         <C>        <C> 
Net earnings (loss)             $ (6,598)    3,606       3,287      9,696  
                                 =======    ======      ======     ======
Shares:
   Weighted average number
     of common shares
     outstanding                  27,472    28,439      27,995     28,419
   Common equivalent shares
     for dilutive effect
     of assumed exercise 
     of stock options                --        290         314        322 
                                  ------    ------      ------     ------
                                  27,472    28,729      28,309     28,741     
                                  ======    ======      ======     ======
Earnings (loss) per share
  of common stock                $  (.24)      .13         .12        .34
                                  ======    ======      ======     ======
</TABLE>






<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
BALANCE SHEETS AND STATEMENTS OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
<S>                           <C>
<PERIOD-TYPE>                 9-MOS
<FISCAL-YEAR-END>                      DEC-31-1995
<PERIOD-END>                           SEP-30-1995
<CASH>                                         887
<SECURITIES>                                16,763
<RECEIVABLES>                               65,851
<ALLOWANCES>                                   653
<INVENTORY>                                  8,391
<CURRENT-ASSETS>                           105,296
<PP&E>                                     484,857
<DEPRECIATION>                             170,236
<TOTAL-ASSETS>                             485,719
<CURRENT-LIABILITIES>                       70,671
<BONDS>                                    158,933
<COMMON>                                     3,078
<PREFERRED-MANDATORY>                            0
<PREFERRED>                                      0
<OTHER-SE>                                 205,086
<TOTAL-LIABILITY-AND-EQUITY>               485,719
<SALES>                                     29,823
<TOTAL-REVENUES>                           293,987
<CGS>                                       23,805
<TOTAL-COSTS>                              198,414
<OTHER-EXPENSES>                            54,332
<LOSS-PROVISION>                                34
<INTEREST-EXPENSE>                           9,208
<INCOME-PRETAX>                              8,286
<INCOME-TAX>                                 4,999
<INCOME-CONTINUING>                          3,287
<DISCONTINUED>                                   0
<EXTRAORDINARY>                                  0
<CHANGES>                                        0
<NET-INCOME>                                 3,287
<EPS-PRIMARY>                                  .12
<EPS-DILUTED>                                  .12
        

</TABLE>