Carnival Corp says it is going to take a $90million hit

[cdamion]

According to the Guardian newspaper in UK, Carnival Corp has announced that it is going to take a $90 million hit in 2012 earnings from loss of use of the Concordia. This does not include recovery/salvage/environmental costs.

 

Here is the link:

 

http://www.guardian.co.uk/business/2012/jan/16/cruise-ship-owner-warns-sixty-million-hit?INTCMP=ILCNETTXT3487

[marvholly]

Nor does it include the cost(s) of the assorted passenger lawsuits.

 

I am willing to be dollars to donuts that NO ship from any line will be leaving the pier w/o a FULL, old fashioned (inc life jackets) muster drill and staff/crews will be having them weekly for at least 6 months and monthly after then.

[Tapi]

For a corporation whose revenue is measured in the billions, 90 million doesn't seem like a whole lot.

[bobnsons]

Carnival Corp has announced that it is going to take a $90 million hit in 2012 earnings from loss of use of the Concordia. This does not include recovery/salvage/environmental costs.

 

 

Oh my the people at Carnival have taken the emergency steps of crunching the numbers to get an idea of weather they will be able to get a big bonus.

 

If the Carnival people really do read this board, please tell the guys in the main office this is not the way to handle such a tragedy.

[golfadj]

Nor does it include the cost(s) of the assorted passenger lawsuits.

 

I am willing to be dollars to donuts that NO ship from any line will be leaving the pier w/o a FULL, old fashioned (inc life jackets) muster drill and staff/crews will be having them weekly for at least 6 months and monthly after then.

 

If you are right and hope you are that would be the good thing to come out of this.

[R&RSC]

Unfortunately, as a publicly traded company, they have legal reporting requirements based on the laws of the countries their stock is traded in. They are well aware of how this seems, but they must do it.

[CrusinCyndi]

Insurance..............they have insurance thru Loyds of London for this...it won't cost Carnival anything except for some bad press

[vacruizer]

Insurance..............they have insurance thru Loyds of London for this...it won't cost Carnival anything except for some bad press

 

From what I understand they only have ship coverage for the actual ship. They don't carry revenue loss insurance.

[PAPERBKWRITER]

If you are right and hope you are that would be the good thing to come out of this.

I was under the impression that muster drills had to, by international law, be performed before leaving the embarking port. I have only sailed from USA ports (20+cruises) on most lines and we have always done the drill before leaving. Guess I was wrong but that would make sense. We now see that the within 24 hour rule is not good and needs to be changed.

[cdamion]

From what I understand they only have ship coverage for the actual ship. They don't carry revenue loss insurance.

 

There is a press release on Carnival Corporation's website. They self-insure for business interruption. If that ship starts leaking fuel, there are going to be some hefty fines and cleanup costs.

[crusinpsychRN]

Muster drills are required in first 24 hours.

[elcuchio24]

Muster drills are required in first 24 hours.

 

For now!

[firefly333]

wow, $90 Million hit .. and this on top of 30% increase in the cost of oil hit on the last earnings and going forward, plus bookings are not down, but down in the average price paid.

 

The only thing project up is pax spending up 1 to 2%, no other bright spot. Those looking to buy a few dollars down should think twice about holding unless its very long term.

[Cruzface]

Oh great. Now they are REALLY gonna cut back on quality in the MDR...:rolleyes:

[elcuchio24]

wow, $90 Million hit .. and this on top of 30% increase in the cost of oil hit on the last earnings and going forward, plus bookings are not down, but down in the average price paid.

 

The only thing project up is pax spending up 1 to 2%, no other bright spot. Those looking to buy a few dollars down should think twice about holding unless its very long term.

 

And how many Ma and Pa Smith's get scared off of their Bahamas cruise now because of CNN coverage?

 

The drop will be sustained and the rebound won't be quick.

[big_duck]

wow, $90 Million hit ..

 

That's about 11 cents a share, less then half of the last declared quarterly dividend.

[elcuchio24]

In accordance with financial disclosure requirements, the company provides the following information:

The company has insurance coverage for damage to the vessel with a deductible of approximately $30 million as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel.

A damage assessment review of the vessel is currently being undertaken to determine how long it will be out of service. The vessel is expected to be out of service for the remainder of our current fiscal year if not longer. For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95 million or $0.11-$0.12 per share. In addition, the company anticipates other costs to the business that are not possible to determine at this time.

[Jeffy294]

Oh my the people at Carnival have taken the emergency steps of crunching the numbers to get an idea of weather they will be able to get a big bonus.

 

If the Carnival people really do read this board, please tell the guys in the main office this is not the way to handle such a tragedy.

 

There are people on the payroll that are paid specifically and required to do this. They are not the part of the company handles what goes on with the ships. Carnival corp has responsibility's to keep its investors informed. These are two separate angles that have to be handled as a publicly traded company with this tragedy. I agree with your point, but don't take it as the company being disrespectful to the lost lives.

[big_duck]

Oh my the people at Carnival have taken the emergency steps of crunching the numbers to get an idea of weather they will be able to get a big bonus.

 

If the Carnival people really do read this board, please tell the guys in the main office this is not the way to handle such a tragedy.

 

:rolleyes:

 

Carnival is a publicly traded company and such is required by law to crunch these numbers and crunch them as quickly as possible.

[a,j,&fam]

John Heald posted this this morning also

CARNIVAL CORPORATION & PLC REQUIRED ANNOUNCEMENT

ON FINANCIAL IMPACT OF COSTA CONCORDIA

 

MIAMI (January 16, 2012) -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today commented on the financial impact resulting from the grounding of the Costa Concordia.

“At this time, our priority is the safety of our passengers and crew,” said Micky Arison, Carnival Corporation ...& plc chairman and CEO. “We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives. They will remain in our thoughts and prayers,” Arison said.

 

In accordance with financial disclosure requirements, the company provides the following information:

 

The company has insurance coverage for damage to the vessel with a deductible of approximately $30 million as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel.

A damage assessment review of the vessel is currently being undertaken to determine how long it will be out of service. The vessel is expected to be out of service for the remainder of our current fiscal year if not longer. For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95 million or $0.11-$0.12 per share. In addition, the company anticipates other costs to the business that are not possible to determine at this time.

Carnival Corporation & plc, which is the parent company of Costa Cruises, is traded on both the New York and London Stock Exchanges.

[Jeffy294]

:rolleyes:

 

Carnival is a publicly traded company and such is required by law to crunch these numbers and crunch them as quickly as possible.

 

Although I would never do it because its a tragedy, and Karma will catch up to the people that do, but you know people will be short selling Carnival stock tomorrow morning.

[CrusinCyndi]

Something tells me you didn't graduate college with a business degree.

 

Gosh, your right.....you are so smart..thank you so much for correcting me.

 

It's good to know somebody with a college education. However I guess that college education did not help the Green Bay Packers this season, no super bowl for them.

[kroozers]

Gosh, your right.....you are so smart..thank you so much for correcting me.

 

It's good to know somebody with a college education. However I guess that college education did not help the Green Bay Packers this season, no super bowl for them.

 

Why post a comment concerning a topic you know absolutely nothing about? Yup - I really thought my education would put them over the top this year.

[letsgo39]

Why post a comment concerning a topic you know absolutely nothing about? Yup - I really thought my education would put them over the top this year.

 

 

Why post just to be mean and nasty?

[CrusinCyndi]

Why post just to be mean and nasty?

 

Guess he/she has nothing better to do...oh well