LONDON — Carnival, the operator of the Costa Concordia cruise ship that ran aground off the coast of Italy on Friday night, claiming at least six lives, said Monday that the shipwreck could cost it approximately $85 million to $95 million in lost earnings alone.
For the fiscal year ending Nov. 30, the impact to 2012 earnings for the loss of use of the ship is expected to be between 11 cents and 12 cents per share.
“In addition, the company anticipates other costs to the business that are not possible to determine at this time,” Carnival said in a statement.
PHOTOS: CRUISE SHIP RUNS AGROUND IN ITALY
Carnival, a dual-listed American-British company that trades on both the New York and London stock exchanges, operates more than 100 ships with brands including P&O, Cunard and Princess Cruises. It accounts for almost half of the global cruise market.
Carnival said the ship was insured for damage with a deductible of approximately $30 million, as well as insurance for third-party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel.
A damage assessment review is underway, Carnival said, but the ship is expected to be out of service for the remainder of the company’s current fiscal year — if not longer.
The company is 47 percent owned by Micky Arison, chief executive and son of the company’s founder, and the broader Arison family. It has lost almost a third of its market value over the past year, amid investor worries about fuel prices and consumer weakness.
In a statement, Arison said he was “deeply saddened” by the shipwreck and the loss to life that resulted.
The financial estimates related to the wreck were released amid reports that a sixth body was found early Monday in the cruise liner.
Morgan Stanley Monday downgraded Carnival to equalweight from overweight and cut its price target on the UK-listed stock after the incident. Carnival’s shares opened down 19 percent Monday.