Wednesday, January 18, 2012

#Carnival : Costa #Concordia Losses To Hit Parent Company Carnival For $95 Million

The sinking of the Costa Concordia could cost its parent company Carnival up to 95 million dollars, the firm says in a statement.

Following the incident, Carnival shares dropped 18% or 0.11 – 0.12 per share. Total losses could hit as high as 95 million dollars, reports BBC.

“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 dollars,” the firm said in a statement to the London Stock Exchange.

The company adds that it “anticipates other costs to the business that are not possible to determine at this time”.

The ship ran aground on Friday, January 13, off Italy’s coast. Six people are reported dead in the accident. Italian, German, French and British nationals were among the 3 200 passengers on board.