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Carnival tells markets financial impact of Costa Concordia
Carnival, parent company of Costa Cruises, has estimated 2012 earnings will be down at least $85million with Costa Concordia out of service.
The company said experts were already assessing the damage to the ship and trying to determine how long the ship will be out of service.
It added the ship is not expected to be in use for the rest of the financial year which finishes at the end of November.
Carnival accepted there would be other costs to the business that cannot yet be determined.
Carnival chairman and CEO Micky Arison said its priority is the safety of the passengers and crew.
He said: "We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives."
Commenting to markets on the financial impact of the grounding of Costa Concordia, Carnival said it had insurance coverage for damage and third party personal injury, subject to a $30million and $10 million excess.
It said the company self-insures for loss of use of the cruise ship, meaning an amount of money is set aside to compensate for the potential future loss.
The statement said: "For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95 million or $0.11-$0.12 per share.
"In addition, the company anticipates other costs to the business that are not possible to determine at this time."
Shares in Carnival have fallen 21% wiping nearly £1 billion from its market value. Its stock had already fallen about 30% over the previous year.
By Diane Evans
Diane
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