Carnival Corporation & plc, the world’s largest cruise shipping group, has issued a profit warning on forecast fall of yields in 2013 that sent shares in the British holding company sharply lower in early London trading.
“The company now expects full year 2013 net revenue yields to be down 2% to 3% compared to the previous flat yield guidance for the year. In addition, voyage cancellations beyond those incorporated in the company's previous earnings guidance, as well as increased selling and administrative costs, are expected to reduce earnings by approximately $0.10 per share,” the company said in a statement.
“Current cruise ticket pricing for the company has driven higher booking volumes however, at the same time, it has led to lower than anticipated net revenue yields which has resulted in reduced earnings guidance,” it continued.
“Based on the above factors, as well as current fuel prices of $674 per metric ton and currency exchange rates of $1.30 to the euro and $1.53 to the pound, the company now expects full year 2013 EPS to be in the range of $1.45 to $1.65 compared to its previous earnings guidance range of $1.80 to $2.10. The company continues to expect second quarter 2013 EPS to be in the range of $0.04 to $0.08 per share despite slightly lower yield expectations,” Carnival said.
Shares in Carnival plc, the UK based holding company, had fallen 13.8% to £20.7 in the first 45 minutes of trading in London this morning.
