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Carnival: 11¢-12¢ EPS hit from Concordia loss of use in 2012

Carnival: 11¢-12¢ EPS hit from Concordia loss of use in 2012
Carnival Corp. & plc estimates the impact from Costa Concordia being out of service for the rest of 2012 at approximately $85m to $95m, or 11 cents to 12 cents per share for the fiscal year ending Nov. 30.

Other additional costs are expected that are not possible to determine currently, Carnival said in a statement.

‘At this time, our priority is the safety of our passengers and crew,’ said corporate chairman and ceo Micky Arison. ‘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. They will remain in our thoughts and prayers.’

Carnival said it has insurance coverage for damage to the vessel with a deductible of approximately $30m as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10m for this incident. The company self-insures for loss of use of the vessel.

A damage assessment review is being undertaken to determine how long Costa Concordia will be out of service. Carnival expects that will be the remainder of the current fiscal year, if not longer.