Royal Caribbean Profits Halved

Wednesday, April 25, 2001
Royal Caribbean Cruises Ltd., the world's number two cruise operator, said that first quarter net profits halved amid an economic slowdown and that earnings were likely to stay weak in 2001. Royal Caribbean said net income fell to $52.5 million in the first three months of 2001 from $105.5 in the same period of 2000. Revenues rose to $726.9 million from $707.8 million, mainly due to higher capacity. Earnings per share fell to $0.27 from $0.55. "Although this year's booking period started out strong, we are disappointed that the momentum did not continue as long as we would have liked," said chairman and chief executive Richard Fain. "As we all know, the slowdown of the economy is affecting consumer spending. This impact, coupled with increased industry capacity, continues to put pressure on pricing," Fain said. "As a result, we now forecast yields for the last nine months of 2001 to be down two percent on a year-over-year basis," he added. Yields are net revenues per available passenger cruise day. But Fain added that, while there would be pressures on prices: "We believe the long-term fundamentals of the industry remain intact." "We firmly believe our young, innovative fleet is competing aggressively in this market. Our product offering is effectively attracting first-time cruisers and providing new options to our large base of loyal guests," he said. Royal Caribbean said that the rise in first quarter revenues was mainly due to an increase in capacity, offset by a decline in yields. But yields were down 11 percent in the quarter, mainly because of high bookings for the Millennium at the start of 2000. "Excluding the impact of the Millennium event, yields were down four percent," it said. - (Reuters)
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Fincantieri to Build Third New Princess Cruises Ship

Fincantieri says it has signed an agreement with Carnival Corp. to build  the new cruise ship for its Princess Cruises brand at a cost of about 600 million euros.

Burger Boat to Build New Passenger Vessel

Burger Boat Company announced that it has received a contract for the construction of an 89-foot (27-meter) steel passenger vessel for Wendella Sightseeing Company, Chicago, Ill.

Holland America Line Offers ‘Explore 4’ Early Booking

Holland America Line knows the trend for savvy travelers is to book vacations well in advance. To encourage those early bookings the line is returning with its

Navy

Admiral on U.S. Navy & Asia Pacific Re-balancing Act

The commander of U.S. Pacific Command has briefed Pentagon reporters, discussing the U.S. rebalance to the Asia-Pacific region, successful engagement with partners

Hellfire Missile Firing a First for New Navy Helicopters

The Royal Australian Navy’s newest maritime combat helicopter, the MH-60R Seahawk ‘Romeo’, has successfully fired its first ‘Hellfire’ missile in the United States.

BAE Systems Awarded Two Navy Contract Modifications

The US Department of Defense informs it has awarded separate contracts to BAE Systems in Jacksonville and in Norfolk for ship repairs and modifications as follows: 1.

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2788 sec (4 req/sec)