Carnival Revises Earnings Forecast

Carnival Corporation has revised its earnings forecast per share for 2012 from $2.55 to $2.85 to $2.07 to $2.34 due to estimated incident-related costs attributed to the grounding of the Costa Concordia, including insurance deductibles and loss of use.

Q1 earnings were also adjusted downward to a loss of $0.09 per share from the previous guidance of $0.06 to $0.10 per share.

In its 10-K filing, Carnival stated that a damage assessment of the ship is being undertaken to determine whether it can be repaired and what the total cost would be. If it can be repaired, it is expected to be out of service for the rest of the year or longer.

Carnival is self-insured for the ship and expects the full year impact on net income to be approximately $85 to $95 million. In addition, the company expects $30 to $40 million of other incident related costs.

After the incident, Carnival stated, the company reduced marketing activities significantly. Excluding Costa, booking volumes declined compared to the prior year. Costa’s bookings have been difficult to interpret because of cancellations, rebookings and redeployment of ships.

Carnival also stated that despite the recent trend, the incident is not expected to have a significant long-term impact on its business.

Cruise Industry News Email Alerts

 

EMAIL NEWSLETTER

Get the latest breaking cruise newsSign up.

CRUISE SHIP ORDERBOOK

75 Ships | 188,259 Berths | $65.9 Billion | View

Expedition Report

Highlights:

  • Full Overview
  • All Operators
  • 200+ Pages
  • PDF Download
  • Order Today
Annual Report

Highlights:

  • Cruise Overview
  • All Ships, Brands
  • 2033+ Outlook
  • Supply Data
  • Instant Download
  • Order Today