Carnival Corp. reports lower earnings and bookings
While crews work to salvage the wrecked Costa Concordia ship off the coast of Italy, the ship’s parent company is struggling to sail clear of stormy conditions.
Carnival Corp., the world’s largest cruise company, Tuesday reported third-quarter profit of $934 million, or $1.20 a share, compared with $1.3 billion, or $1.71, in the same period last year.
Carnival also reported that bookings for the remainder of 2013 and the first quarter of 2014 are behind the same periods in previous years, with prices about the same.
For the full year, revenue is expected to be down 3% compared with 2012, partly because of higher fuel costs and political turmoil in the eastern Mediterranean area, the Miami company said.
The cruise company, which runs 100 ships under 10 brands, including Costa, has been working to rebuild its image in the wake of the wreck of the Costa Concordia. The ship ran aground in January 2012, killing 32 of 4,200 people on board. Carnival is investing $300 million in safety improvements on many of its ships and is launching a new advertising campaign.
“During the past few months, Carnival Cruise Lines has seen a steady improvement in brand perception among U.S. consumers based on national market research data,” said Arnold Donald, president and chief executive of Carnival Corp.
Carnival shares fell $2.86, or 7.7%, to $34.54 on Tuesday.
