Carnival Says Fire on Triumph to Cut First Half Profit
Carnival Corp. said the fire on the Triumph cruise ship will cost the company 8 cents to 10 cents a share in the first half of fiscal 2013 for repairs and travel disruptions. The stock fell.
Carnival, based in Miami, issued the estimate today in an e-mailed statement.
The company, the world’s largest cruise operator, is towing the stricken ship, which suffered an engine room fire on Feb. 10, to Mobile, Alabama. Carnival has reserved 1,500 hotel rooms and chartered 20 planes for the more than 3,100 passengers when they arrive. All will receive a full refund and credit toward another cruise, the company said.
Carnival’s shares fell 4 percent to $37.46 at the close in New York. The stock has gained 1.9 percent this year, trailing a 6.6 percent rise in the Standard & Poor’s 500 Index.
Triumph’s next 14 voyages through April 13 have been canceled, the company said today on its website. Those guests will also receive a full refund and as much as a 25 percent discount on future sailings.
McDonald’s Corp., the world’s largest restaurant chain, has 350 employees, franchisees, family members and friends on board the Triumph, Danya Proud, a company spokeswoman, said. The Oak Brook, Illinois-based company’s passengers, who are from the greater Southwest, Houston and Rocky Mountain areas, were winners of an incentive program conducted last summer, Proud said via e-mail. All are safe, she said.
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