Earnings Reports

Kloster Cruise has reported earnings of about $11.2 million for the third quarter of this year, compared to $17.2 million for the same period last year. The reduced earnings are attributed to losses caused by cancellation of Royal Viking Line's China cruises; to Hurricane Hugo, and to the costly introduction of the Royal Viking Star in new markets.

For the first nine months of 1989, Kloster Cruise reported that earnings were up 32 percent compared to the same period last year, at about $37 million compared to $28.4 million last year.

Executives said that the cancellation of RVL's China cruises cost that division about $10 million in 1989 and that Hurricane Hugo generated losses from one to two million dollars in the third quarter.

In the second quarter, Kloster reported net earnings of $6.8 million compared to $4.6 million in 1988. In its six month report, the company said that traditionally the second quarter is weak due to a seasonal slack in demand and the transocean repositioning of the RVL vessels.

The company also stated that it lost four to five million dollars following the cancellation of its China cruises and that it was still suffering cancellations and increased air transportation costs caused by the Eastern Airlines strike.

In the first quarter meanwhile, Kloster Cruise announced that it had tripled net earnings to $18.5 million compared to $6.6 million for the first quarter in 1988.

The company has also noted that it has achieved greatly reduced operating costs and increased onboard spending.

At press time, the shares of Vard, which is the parent company of Kloster Cruise, closed at at NOK 112 for A shares and NOK 110 for B shares, down NOK 5.50 and NOK 9.90 respectively. (1989 highs/lows are NOK 166/77.90 for A shares and NOK 160/105 for B shares.)

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