Business

Carnival swings to first-quarter loss of $139 million, taking hit from Costa Concordia accident

MIAMI — Cruise ship operator Carnival reported Friday that it swung to a first-quarter net loss of $139 million, or 18 cents a share, and cut its fiscal outlook due to the Costa Concordia accident off the Italian coast earlier this year.

The loss compared to a profit of $152 million, or 19 cents a share in the same period a year ago. Revenue rose to $3.6 billion from $3.4 billion in the prior year, largely due to increased ship capacity and higher ticket prices.

“First quarter 2012 results reflect Costa Concordia incident expenses of $29 million, including a $10 million insurance deductible related to third party personal injury liabilities,” the company said in a press release.

Carnival also recorded an insurance recoverable of $515 million, which offset the write-off on the Costa Concordia value, as the ship “has been deemed to be a constructive total loss.”

The cruise line’s subsidiary, Costa Crociere, said Friday that it has received six bids to remove the Concordia wreck, adding that it will select a company by early next month. The company said the removal could take up to 12 months.

In another blow to the firm’s troubled Costa unit, Carnival said it incurred a $34 million impairment charge related to the Costa Allegra. The Allegra was disabled a few weeks back for three straight days in the middle of the Indian Ocean after a fire on board.

Carnival also issued a new earnings forecast that fell below many analysts’ estimates due to the Costa impact, which appeared to dent future bookings.

“The company’s expectations for 2012 will be affected by the direct and indirect financial consequences of the Costa Concordia incident,” Carnival said.

The company now sees 2012 adjusted earnings per share of $1.40 to $1.70, down from a previously lowered estimate of $2.04 to $2.37 a share. Analysts were expecting $1.85 a share, according to MarketWatch.

Carnival also noted that fuel prices increased 30 percent during the quarter.

Shares in the company ticked up 0.8 percent in early New York trade.