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Carnival posts loss, cuts outlook on Costa wreck

Oil booms cordon off the area during the extraction of fuel from the wreck of capsized cruise liner Costa Concordia, which ran aground off the west coast of Italy, at Giglio island February 15, 2012.


Carnival Corp. & PLC , the world's largest cruise operator, reported a first-quarter loss and significantly cut its fiscal year profit and revenue forecast on Friday, largely because of a disaster in January involving one of its ships.

Carnival, whose cruise liner Costa Concordia capsized off the coast of Italy in January, killing at least 25 people, said it expects to earn between $1.40 (U.S.) per share and $1.70 per share in the fiscal year.

At its midpoint, this new range is $1.15 per share lower than the forecast Carnival gave in December, largely because of a hit to the Costa brand's earnings.

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Carnival also lowered its revenue forecast and now expects net revenue yield, a gauge of how much each cabin generates, to be down 2 to 4 per cent on a constant currency basis, compared with a rise of 1 to 2 per cent originally forecast.

The company, whose lines also include its namesake as well as Holland America and Princess Cruises, reported a net loss of $139-million, or 18 cents per share for the first quarter ended Feb. 29, 2012, compared to a profit of $152-million, or 19 cents, a year earlier.

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