Royal Caribbean Profits Take a Hit

Posted by Michelle Howard
Thursday, April 24, 2014
Navigator of the Seas (Courtesy Royal Caribbean)

Royal Caribbean Cruises Ltd reported a much lower-than-expected quarterly profit as costs rose and passengers spent less onboard.

Shares of the company, whose cruise lines include Royal Caribbean International, Celebrity Cruises and Azamara Club Cruise, fell as much as 3.2 percent in early trading.

The company shortened or canceled six cruises during the January-March quarter, typically the strongest for cruise operators.

Voyage disruptions hurt yields, which include ticket sales and spending on board, by about 0.5 percent, the company said.

Net cruise costs excluding fuel rose 1.3 percent on a constant-currency basis in a quarter in which cruise liners usually offer their best deals.

The company expects smoother sailing in coming quarters as it expects higher bookings and continuing strong demand for its Chinese and European cruises.

Royal Caribbean said booking volumes rose about 18 percent in the past three months. Bookings jumped 20 percent in the past eight weeks.

"The company experienced a record booking week at the end of February, which is an unusual time for so much activity," the company said in a statement

The industry has just started to recover from negative publicity arising from a series of headline-grabbing mishaps, including virus outbreaks and engine fires, over the last two years.

Carnival Corp, the world's No. 1 cruise operator, forecast a full-year profit below analysts' estimates in March as it cut prices. It also plans to spend more on advertising to attract customers after onboard mishaps hurt demand.

Royal Caribbean raised its full-year earnings forecast to $3.25-$3.45 per share from its previous forecast of $3.20-$3.40 per share. It expects net yields to increase 2 percent to 3 percent.

The company said it expects second-quarter earnings of 45 cents-55 cents per share, largely above the average analyst estimate of 46 cents per share.

The company's net income fell 65 percent to $26.5 million, or 12 cents per share, in the first quarter ended March 31.

Excluding items, earnings were 21 cents per share, well below the average estimate of 28 cents per share.

Revenue fell 1 percent to $1.89 billion, in line with analysts expectations, according to Thomson Reuters I/B/E/S.

Royal Caribbean's shares were down 2.8 percent at $51.13 in morning trading on Thursday on the New York Stock Exchange. Carnival shares were up less than a percent at $37.67.

(Reporting by Devika Krishna Kumar and Siddharth Cavale in Bangalore; Editing by Maju Samuel and Saumyadeb Chakrabarty)

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

Finance

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

DP World Profit Up 22%

Global marine terminal operator DP World today announced strong financial results from its global portfolio of marine terminals for the six months to 30 June 2015,

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

Passenger Vessels

Carnival Ramping Up in New Orleans

Carnival on track for record year from Port of New Orleans in 2015; expects to embark 3 millionth passenger post-Katrina next year   New Orleans’ number one cruise

Wärtsilä Scrubbers for Finnlines Vessels

Finnlines, a Ro-Ro and passenger vessel operator with services in the North and Baltic Seas, has contracted Wärtsilä to supply three vessels with exhaust cleaning scrubber systems.

MN 100: Blount Boats, Inc.

The Company: Over time, the Blount shipyard has built 363 vessels, including such iconic designs as the 130-foot, 600-passenger Miss Liberty. Built in 1952, the

News

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

 
 
Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Sonar Winch
rss | archive | history | articles | privacy | 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: 0.3704 sec (3 req/sec)