Carnival Announcement on Concordia Financial Im...
Carnival Corporation & plc Required Announcement on Financial Impact of Costa
Concordia
MIAMI, Jan. 16, 2012 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK)
today commented on the financial impact resulting from the grounding of the
Costa Concordia.
"At this time, our priority is the safety of our passengers and crew," said
Micky Arison, Carnival Corporation & plc chairman and CEO. "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,"
Arison said.
In accordance with financial disclosure requirements, the company provides the
following information:
The company has insurance coverage for damage to the vessel with a deductible
of approximately $30 million as well as insurance for third party personal
injury liability subject to an additional deductible of approximately $10
million for this incident. The company self-insures for loss of use of the
vessel.
A damage assessment review of the vessel is currently being undertaken to
determine how long it will be out of service. The vessel is expected to be out
of service for the remainder of our current fiscal year if not longer. 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.
Carnival Corporation & plc, which is the parent company of Costa Cruises, is
traded on both the New York and London Stock Exchanges.
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this release are
"forward-looking statements" that involve risks, uncertainties and assumptions
with respect to Carnival Corporation & plc, including some statements
concerning future results, outlooks, plans, goals and other events which have
not yet occurred. These statements are intended to qualify for the safe harbors
from liability provided by Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. We have tried, whenever
possible, to identify these statements by using words like "will," "may,"
"could," "should," "would," "believe," "expect," "anticipate," "forecast,"
"future," "intend," "plan," "estimate," "target" and similar expressions of
future intent or the negative of such terms. Because forward-looking statements
involve risks and uncertainties, there are many factors that could cause
Carnival Corporation & plc's actual results, performance or achievements to
differ materially from those expressed or implied in this release.
Forward-looking statements include those statements that may impact, among
other things, the forecasting of Carnival Corporation & plc's non-GAAP earnings
per share, net revenue yields, booking levels, pricing, occupancy, operating,
financing and tax costs, fuel expenses, costs per available lower berth day,
estimates of ship depreciable lives and residual values, liquidity, goodwill
and trademark fair values and outlook. These factors include, but are not
limited to, the following: general economic and business conditions;
fluctuations in foreign currency exchange rates; the international political
climate, armed conflicts, terrorist and pirate attacks, vessel seizures, and
threats thereof, and other world events affecting the safety and security of
travel; competition from and overcapacity in the cruise ship or land-based
vacation businesses; accidents, the spread of contagious diseases and threats
thereof, adverse weather conditions or natural disasters and other incidents
affecting the health, safety, security and satisfaction of guests and crew;
negative publicity concerning the cruise business in general, or Carnival
Corporation & plc in particular, including any adverse environmental or
community impacts of cruising; lack of continuing availability of attractive,
convenient and safe port destinations; changes in and compliance with laws and
regulations relating to the protection of persons with disabilities,
employment, environment, health, safety, security, tax and other regulations
under which Carnival Corporation & plc operates; economic, market and political
factors that are beyond Carnival Corporation & plc's control, which could
increase its operating, financing and other costs, especially its fuel
expenditures; volatility in fuel prices; the ability of Carnival Corporation &
plc to implement its shipbuilding programs and ship repairs, maintenance and
refurbishments on terms that are favorable or consistent with its expectations;
increases in Carnival Corporation & plc's repairs and maintenance expenses and
refurbishment costs as its fleet ages; the continued strength of Carnival
Corporation & plc's cruise brands and its ability to implement its brand
strategies; Carnival Corporation & plc's international operations are subject
to additional risks not generally applicable to its U.S. operations; geographic
regions in which Carnival Corporation & plc tries to expand its business may be
slow to develop and ultimately not develop how it expects; whether Carnival
Corporation & plc's future operating cash flow will be sufficient to fund
future obligations and whether it will be able to obtain financing, if
necessary, in sufficient amounts and on terms that are favorable or consistent
with its expectations; the impact of disruptions in the global financial
markets or other events may negatively affect the ability of Carnival
Corporation & plc's counterparties and others to perform their obligations;
continuing financial viability of Carnival Corporation & plc's travel agent
distribution system, air service providers and other key vendors in its supply
chain and reductions in the availability of, and increases in the pricing for,
the services and products provided by these vendors; Carnival Corporation &
plc's decisions to self-insure against various risks or its inability to obtain
insurance for certain risks at reasonable rates; disruptions and other damages
to Carnival Corporation & plc's information technology and other networks and
operations, and breaches in data security; loss of key personnel or Carnival
Corporation & plc's ability to recruit or retain qualified personnel; union
disputes and other employee relation issues; and risks associated with the dual
listed company arrangement. Forward-looking statements should not be relied
upon as a prediction of actual results. Subject to any continuing obligations
under applicable law or any relevant stock exchange rules, Carnival Corporation
& plc expressly disclaim any obligation to disseminate, after the date of this
release, any updates or revisions to any such forward-looking statements to
reflect any change in expectations or events, conditions or circumstances on
which any such statements are based.
SOURCE: Carnival Plc
CONTACT: Media Contact US: Jennifer de la Cruz, Carnival Corporation & plc,
+1-305-599-2600, ext. 16000, or Investor Relations Contact, US/UK, Beth
Roberts, Carnival Corporation & plc,+1-305-406-4832
Latest directors dealings
- 3 hours ago Johnson Matthey
- 4 hours ago Galliford Try
- 4 hours ago Galliford Try
- 4 hours ago Centrica
- 5 hours ago Smith & Nephew