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 July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

Mexican Navy Delegation Visits NSSA

The U.S. Navy reported that its Norfolk Ship Support Activity (NSSA) welcomed the Mexican Navy Delegation to Building CEP-200, Naval Station Norfolk, Aug. 21 for

Airbus May Sell Stake in Submarine Supplier

Airbus is considering a sale of its 49 percent stake in submarine supplier Atlas Elektronik as part of a reshuffle of its military business, German newspaper Die

Today in U.S. Naval History: August 22

Today in U.S. Naval History - August 22 1912 - Birthday of Dental Corps 1945 - First surrender of Japanese garrison at end of World War II; USS Levy receives

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction 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: 0.0730 sec (14 req/sec)