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Carnival’s woes continue as it expects hit on earnings due to cruise disaster

Feb 13, 2013 4:37 pm

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The company’s stock price fell about 5 percent today, but wait until the ship hits the dock and the media attention on the passengers goes into overdrive, expect the stock to tank more.

— Rafat Ali

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Carnival Corp. said Wednesday that its crippled Triumph cruise ship will reduce its earnings.

The Miami-based company said the total impact from voyage disruptions and related repair costs will result in an 8 to 10 cents per-share reduction to its earnings in the first half of the 2013 fiscal year.

The Carnival Triumph left Galveston, Texas, for a four-day cruise last Thursday with 3,143 passengers and 1,086 crew members. It was stranded Sunday after an engine room fire knocked out its primary power source, crippling its water and plumbing systems and leaving it adrift on only backup power. The ship is still at least a day from being guided to port in Alabama.

Carnival has canceled the Triumph’s next two voyages. The company is trying to make customers as comfortable as possible, despite reports from some passengers who have told relatives of filthy, hot conditions and limited access to food. Passengers will get a full refund.

Carnival shares fell $1.56, or 4 percent, to close at $37.46.

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