Author Topic: Royal Caribbean cuts forecasts; shares dive  (Read 1497 times)

0 Members and 1 Guest are viewing this topic.

Kroooz-Cam

  • Passenger
  • *
  • Posts: 9
  • Karma: +4/-0
    • Kroooz-Cams
Royal Caribbean cuts forecasts; shares dive
« on: July 29, 2009, 12:05:11 PM »
This is the result of this morning's conference call with RCCL.  In reading it I wonder how many people here have actually come in contact with H1N1 flu (formerly known as "Swine Flu") or know of someone who has?  Maybe I live an insular life but I know of no one personally who has contracted it.

These earnings revisions are severe.

jeff

July 29, 2009: 11:38 AM ET

* Posts Q2 loss

* H1N1 flu costs seen at 27 cents/share for full year

* Sees stability in demand, better yields in 2010

* Shares down 12 percent on NYSE

(Recasts; adds outlook, share move, conference call comments)

OSLO/NEW YORK (Reuters) - Royal Caribbean Cruises Ltd posted a quarterly loss and cut its 2009 forecast as fears about the flu and the weak economy dampen travel demand, sending the company's shares down 12 percent.

The world's No. 2 cruise operator also forecast third-quarter earnings below Wall Street estimates and said costs from the H1N1 flu would be higher than previously expected.

The Miami-based company cut its forecast for 2009 earnings to a range of 70 cents to 80 cents per share, due in part to the impact of the flu virus.

The company last cut its full-year forecast in June, when it said the flu, ineffective fuel hedging and other costs would lower earnings to 86 cents a share.

It forecast third-quarter earnings of 95 cents to $1.00 a share, below analysts' average forecast of $1.22, according to Reuters Estimates.

The company reported a second-quarter net loss of 16 cents per share, or $35.1 million, compared with a profit of $84.7 million, or 40 cents, a year earlier.

Analysts on average expected a per-share loss of 15 cents, according to Reuters Estimates.

Revenue slumped 19 percent to $1.3 billion, slightly below the average forecast.

The company's shares were down $1.98 to $14.41 in late-morning trade on the New York Stock Exchange.


H1N1 FLU IMPACT

The H1N1 flu virus has led to itinerary modifications and lower demand for vessels that visit Mexican ports, the company said. During the second quarter, the company said the flu cost it 5 cents per share.

It said the flu would reduce third-quarter earnings by 18 cents a share and full-year earnings by 27 cents a share. In June it said the full-year impact would be 22 cents a share.

"Obviously, the economy continues to be a challenge and the impact from the publicity surrounding H1N1 has been very frustrating," Chief Executive Richard Fain said in a statement.

During a conference call with analysts, Chief Financial Officer Brian Rice said the company continues to see lower bookings than a year ago, but booking activity tends to spike about four months prior to travelers' departures.

The booking window is more contracted than last year, Rice said, but he added it has been consistent for about eight months.

The company said it expects yields to improve next year and is seeing stability in demand.

Royal Caribbean's bigger rival, Carnival Corp & PLC , beat analysts' forecasts for quarterly profit in June on better pricing and lower cruise costs. (Reporting by Oslo newsroom and Deepa Seetharaman in New York; additional reporting by Kyle Peterson in Chicago; Editing by Hans Peters and John Wallace)


Cape Cod 13

  • Vice Admiral
  • ******
  • Posts: 1944
  • Karma: +15/-3
  • Cape Cod 13
Re: Royal Caribbean cuts forecasts; shares dive
« Reply #1 on: July 30, 2009, 06:34:20 AM »
I remember a few years ago, people were getting sick on the cruise ships a lot and having to cut the cruises short. That was not the H1N1 flu. They lost a lot of money back then. Every time you turned on the T.V. another cruise ship headed back to port with about 300 people sick. They never did find out what cause it did they? Bye the way I have not heard or read of anyone on Cape Cod with the H1N1 flu. Linda C.C.13

Seacruise Forums

Re: Royal Caribbean cuts forecasts; shares dive
« Reply #1 on: July 30, 2009, 06:34:20 AM »

Kroooz-Cam

  • Passenger
  • *
  • Posts: 9
  • Karma: +4/-0
    • Kroooz-Cams
Re: Royal Caribbean cuts forecasts; shares dive
« Reply #2 on: July 30, 2009, 01:28:34 PM »
Thanks for the Reply Linda.  I do not know anybody that has contracted H1N1 either.

In regards to Norovirus or any other contagion on a cruise ship I saw an interesting feature on Brink this week.  A scientist is creating a synthetic material with the surface mimicking that of a shark's skin.  Sharkskin does not allow organisms to adhere to its surface unlike other sea creatures.  It is all done with the shape of the surface and could potentially be applied to surfaces that come in contact with cruisers instead of constantly bleaching and disinfecting these surfaces.

Phyllis

  • Vice Admiral
  • ******
  • Posts: 3058
  • Karma: +21/-2
Re: Royal Caribbean cuts forecasts; shares dive
« Reply #3 on: July 30, 2009, 02:52:30 PM »
That would be great.  (TG for the sharks' sake it's synthetic!  They've got enough trouble with being killed for their fins  :()

Seacruise Forums

Re: Royal Caribbean cuts forecasts; shares dive
« Reply #3 on: July 30, 2009, 02:52:30 PM »