Carnival counts the cost of cruise ship crash -UPDATE
Carnival (CCL), the FTSE 100 company which owns the Costa Concordia, the cruise ship which grounded off the coast of Italy at the weekend, says the cost of not having the boat in service will be between $85m and $95m.
Carnival (CCL), the FTSE 100 company which owns the Costa Concordia, the cruise ship which grounded off the coast of Italy at the weekend, says the cost of not having the boat in service will be between $85m and $95m.
Carnival is the parent company of Costa Cruises, the operator of the Concordia.
The company also says it has insurance deductibles of around $40m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In a statement accompanying today's release Micky Arison, Carnival's Chief Executive, said:
"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's shares have fallen by 28% in the last 12 months.
The death toll from the damaged ship rose to six on Monday morning, as bodies continue to be recovered from the luxury liner, which hit rocks off the island of Giglio in the Mediterranean on Friday evening.
Commenting on the news this morning, analysts at Credit Suisse are saying that, "CCL still positioned for the long-term: As the industry leader, with an investment grade balance sheet and leading share, CCL should ultimately be able to weather this storm. While we would not recommend stepping into shares near-term, the company's nearly 3% dividend yield and history of returning capital through buybacks should provide a backstop for the stock. If the shares corrected to $30, CCL would trade at 11.1 times our 2012 earnings-per-share estimates versus a 10-year average forward price-to-earnings ratio of 16.2x."
BS
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Which UK region has the most in savings? Average savings by area
The amount people have in their savings differs from region to region in the UK. How does your nest egg compare to those living nearby?
-
Doug and Mary Perkins: Specsavers’ clear-sighted founders
Helped by the deregulation of the sector in the 1980s and brilliant advertising, Mary Perkins and her husband Doug have taken Specsavers to the top of the optometry market