Costa Concordia parent Carnival's profit tumbles
(Reuters) - Carnival Corp & Plc (CCL.N) (CCL.L), the world's largest cruise operator, posted a 93 percent drop in profits, hurt by rising fuel costs, sending its shares down 3 percent in morning trade.
For the quarter, ended May 31, the company earned just $14 million (8.94 million pounds), or 2 cents a share, compared with $206 million, or 26 cents a share, a year earlier.
On an adjusted basis, earnings were 20 cents a share, topping analysts' average forecast of 8 cents, according to Thomson Reuters I/B/E/S.
Fuel prices increased 12 percent to $756 per metric ton, costing the company an additional $71 million. But the company said it expects lower costs and fuel prices in the future, and it raised its full-year profit view.
For the full year, it expects to earn $1.80 to $1.90 per share on an adjusted basis. In March it forecast earnings between $1.40 to $1.70.
The company's European business took a big hit after its Costa Concordia cruise liner capsized off the coast of Italy in January, killing at least 25 people. Carnival has said a companywide recovery will take a year or two, but booking volumes have continued to improve.
For the last seven weeks, booking volumes excluding Costa have increased 8 percent versus the prior year. Booking volumes for Costa over the same period are up 25 percent.
Shares of the company were down 3.5 percent at $33.34 in morning trade on the New York Stock Exchange.
(Reporting By Phil Wahba and Nivedita Bhattacharjee; Editing by Gerald E. McCormick and John Wallace)
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