RCL: Upbeat
Short of admitting to being bullish, Royal Caribbean Cruises executives gave an upbeat forecast for the rest of 2010 and 2011 on the company’s recent Q2 earnings call. The earnings guidance for Q3 is from $1.53 to $1.57 per share, and the guidance for the full year is from $2.25 to $2.35. “The year is progressing better than we expected it to,” said Richard Fain, chairman and CEO. “And the business is generally better both in this country and abroad.” RCL reported net income of $60.5 million, or $0.28 per share, on revenues of $1.6 billion for the second quarter ended June 30, 2010, compared to a loss of $35 million, or $0.16 per share, on revenues of $1.3 billion for the same period last year. The newest vessels are driving most of the year-over-year improvement, according to Brian Rice, executive vice president and CFO.
NCL: Momentum
Norwegian Cruise Line has reported a loss of $14.9 million on revenues $478 million for the second quarter ended June 30, 2010, compared to net income of $15.4 million on revenues of $478.4 million for the second quarter last year. The net loss included a non-recurring charge of $33.1 million related to foreign exchange contracts associated with the financing of Norwegian Epic, according to Norwegian, without which, it would have posted net income of $18.2 million. “The results demonstrate that we are continuing to build momentum,” said Kevin Sheehan, CEO.
And there is more: The Cruise Ship Safety Bill has been signed into law; Hapag-Lloyd is returning to the Great Lakes; MSC confirms Fantastica; Carnival Australia joins the Asia Cruise Association; Holland America continues its Bermuda program in 2011; Costa Pacifica starts testing whale avoidance technology; and Carnival steps up its entertainment in response to Royal Caribbean and NCL.
