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Italy ship disaster to cost $95m

Jan 16 2012 13:24 Reuters

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London - Carnival Corp, the owner of the cruise ship that capsized off Italy's west coast, said on Monday it estimated the impact to 2012 earnings for loss of use alone to be about $90m.

The group, which said it was providing the information due to financial disclosure rules, said it also anticipated further costs to the business it could not yet determine.

"The vessel is expected to be out of service for the remainder of our current fiscal year if not longer," it said in a statement to the Stock Exchange.

"For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85m - $95m or $0.11 - $0.12 per share."

It said it had insurance coverage for damage to the vessel with a deductible of around $30m.

"At this time, our priority is the safety of our passengers and crew," said Micky Arison, chairperson and chief executive of Carnival Corporation.

"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."

Carnival Corp is the parent company of Costa Cruises.

 

 
 
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