Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, has reduced its 2015 earnings per share (EPS) forecast on strength of the US dollar.
“The company has updated full year Adjusted EPS guidance to a range of $4.45 to $4.65 from $4.65 to $4.85. The strengthening of the US Dollar and the increase in fuel prices since our January guidance is expected to negatively impact earnings by $0.36,” RCCL said in a statement.
Constant currency net yields are expected to be in the range of up 2.5% to 4.0%, a slight reduction from previous guidance mainly due to the impact of the stronger US Dollar on the purchasing power of our non-US guests.
Net cruise costs excluding fuel are expected to be flat to down 1% on a constant currency basis, better than previous guidance of 1% or better. The fundamentals of the business as well as the company's focus on the targets associated with the Double-Double program remain on track and are unchanged.
"The business continues to perform well, despite the currency volatility," said Jason T. Liberty, chief financial officer. "Our unwavering commitment to cost consciousness has helped us identify further efficiencies that are driving a significant shift in our cost guidance for the full year. This type of operational focus throughout all facets of our business is a core enabler of our continued financial success."