YOU ARE HERE: LAT HomeCollections

Carnival Cruises reports loss as it rebounds from calamities at sea

March 25, 2014|By Hugo Martin

Carnival Corp., the world's largest cruise line company, reported a $15-million net loss for the three months that ended Feb. 28 as it continues to rebound from several cruise catastrophes.

The Miami-based company that controls nearly 50% of the market through 10 cruise line brands around the world reported $37 million in net profits for the same period in 2013, according to Carnival's latest financial report.

Carnival's revenue for ticket sales and onboard spending for the first quarter of 2014 were nearly on par with revenue for the same period last year -- about $3.6 billion. But the company reported higher operating expenses and a loss of $17 million in fuel derivatives.

Carnival's earnings have been under scrutiny over the last few years because of a series of calamities at sea. The Costa Concordia, which is owned by a Carnival subsidiary, ran aground in January 2012, killing 32 of 4,200 people on board.

In February 2013, a fire on the Carnival Triumph left the ship without power in the Gulf of Mexico. Passengers were stranded aboard the stalled ship for four days until it was pulled into port by several tugboats.

The cruise ship operator forecasts 2014 adjusted earnings of $1.50 to $1.70 per share, compared to its previous outlook of $1.40 to $1.80 per share. Analysts predicted earnings of $1.72 per share

Still, Carnival executives say future bookings for the rest of the year are running ahead of last year by nearly 20% but at lower ticket prices.

"Increased interest across our brands is an encouraging indication that our message is resonating as consumers recognize the strong value proposition and exceptional vacation experiences we provide,” Carnival Corp. President and Chief Executive Arnold Donald said in a statement.


Crackdown on oversized carry-on bags backed by many fliers 

Details revealed on 'Pirates of the Caribbean' attraction in Shanghai

Airlines fill planes to record capacity as demand continues to grow

Los Angeles Times Articles