Impact on Carnival?

[guernseyguy]

Carnival share price down 18% 30 minutes after opening time on London Stock Market. Who said it wouldn't affect Carnival's financial situation?

 

Don't forget that:

 

Short term the stock market is a voting machine.

Long term its a weighing machine.

 

Yes, it will take a hit in the short term, longer term it will recover (unless this impacts cruise bookings significantly - and its more likely to be an industry rather than Carnival Corp effect)

[Lyncruiser]

Carnival shares down sharply in London trading.

 

 

http://www.proactiveinvestors.co.uk/companies/news/37823/carnival-shares-drop-sharply-after-costa-concordia-tragedy-37823.html

[cdamion]

Carnival Corp has announced that the loss of use of the Concordia is going to cause it to lose $90 million of revenue in 2012. This figure does not include the cost of salvaging the ship or anything else - just loss of use.

 

Source: UK Guardian

[jajabinks]

Well what else can you say after hearing first comments from the passengers and authorities?

 

Ship was miles away from it is right course before the crash.

 

When the crash happend personnel told passengers it is just a technical fault and same went on nearly 45 minutes.

 

Some of the personnel told passengers go their cabins and another ones to muster stations.

 

According Italian authorities captain didn't make mayday call.

 

Personnel didn't know how to operate safety boats.

 

And captain abandoded ship before all passengers were safe.

 

To me those things sound bad seamanship and neglecting passenger safety. Lets just hope that isn't policy in all Costa Cruise ships.

 

We sailed on the Costa Classica in Asia,and I was appalled at the lack of muster drill till 2nd day at sea after we lost power in the south china sea, when the emergency sirens blasted , nobody knew what to do , but the officers were putting life jackets on whilst telling pax that is was just an electrical fault. After the cruise we emailed Costa Asiaand was astounded when they flat out denied that the ship had ever lost power!!!!! ( 1500 pax must have been haluscinating). So this avoidable tragedy involving a Costa ship does not come as a shock to me.

[gtalum]

You go ahead and watch your computer monitor all day long tomorrow, and see if CCL's stock price moves at all. Have fun!

 

Carnival Corporation is traded on the New York Stock Exchange, which will be observing a holiday tomorrow. The stock will not trade until Tuesday.

 

CCL is also traded on the London exchange, which I can assure you is open today. ;)

 

Regardless, with today's drop at less than 20%, it won't likely get low enough for me to buy. I suspect it will rebound after tomorrow (it will probably take another hit when the US market opens tomorrow).

[JezzaC]

Carnival Corp has announced that the loss of use of the Concordia is going to cause it to lose $90 million of revenue in 2012. This figure does not include the cost of salvaging the ship or anything else - just loss of use.

 

Source: UK Guardian

 

Will be really interesting to see what will insurance companies do. This can come really expensive to Carnival.

[Andipanda1]

No - I am suggesting what you are suggesting. I Like "foreigners" -- even Americans :D -- but any cruise where announcements are made in 5 languages would, for me, be highly undesirable and frankly, even dangerous.

 

 

Barry

 

Hmm. Perhaps you should stay home, then. I appreciate announcements being made in different languages--that way EVERYONE knows what to do and when. I have also been on cruises where several languages were spoken. There was no problem. It's the responsibility of each passenger to be familiar with safety procedures and to pay attention to the muster drill...

[cubella59]

Shareholders saw value of Carnival diminish by $3.5B. Micky Arison and family saw $1.5B of personal wealth evaporate.

 

http://uk.finance.yahoo.com/news/Costa-Concordia-Crashes-foolcouk-3213563049.html?x=0

[lindros2]

To keep this on topic, here are the "impact" stories thus far (not to duplicate the above on share price and ~$90m impact):

 

1. Hannover Re Sees Major Claim From Cruise Wreck Off Italian Coast

> http://online.wsj.com/article/BT-CO-20120116-701786.html

"A company spokeswoman said the company now defines a major claim as a claim of at least EUR10 million, like other peers such as Munich Re AG. Previously, Hannover Re's definition of a major claim was EUR5 million."

 

2. Costa Concordia Hull Could Cost EUR405M But Total Losses May Rise

 

3. Carnival Cut To Equalweight From Overweight By Morgan Stanley

[tntornadox]

Short term panic, no surprise.

 

Carnival is the world's largest cruise operator, they will be back. Probably quicker than many realize.

[Raven Days]

That isn't anywhere near the same circumstance. AA/DL/UA were attacked by terrorists. That was a malicious act that the airlines could not be expected to anticipate (that point is arguable, I know.)

 

This incident with the Concordia is a routine cruise, no evidence of sabotage or terrorism. I know all the details will take months to be discovered, but it's hard to see how this is anything other than negligence.

 

I've taken five cruises; between this incident and the incident last year in Sharm-el-Shiekh, right now I wouldn't take a Costa cruise if it were free.

 

 

Yes it is..sorta. 9/11 was a tramatic experience for all those involved as well as those of us who watched it unfold on TV. True it was caused by terrorists however, it was still tramatic (and still is). For some time after ward it was difficult for lots of people to fly. As time has gone on, the fear has diminished...to a point. The sinking of the Concorida can be compared to a crashing plane. Both start out as routine for those passengers. No one expects either to happen. But do you let the fear cripple you or do you remind yourself that accidents happen and you have to move on, not expecting the worst, but being more prepared? Sure there are going to be those who will never cruise again, just as there were those who have not flown since 9/11. I am not sure how I would react if I had been one of the passengers on this ship. I want to believe that once I reached safety and knew that I was ok, that I would indeed cruise again.

[pdsgt]

That isn't anywhere near the same circumstance. AA/DL/UA were attacked by terrorists. That was a malicious act that the airlines could not be expected to anticipate (that point is arguable, I know.)

 

This incident with the Concordia is a routine cruise, no evidence of sabotage or terrorism. I know all the details will take months to be discovered, but it's hard to see how this is anything other than negligence.

 

I've taken five cruises; between this incident and the incident last year in Sharm-el-Shiekh, right now I wouldn't take a Costa cruise if it were free.

 

Hey, I'm already watching the ads for Costa!! I'm betting they'll have some terrific deals to get consumer confidence back. Between that and all the new safety issues that are gonna come from this, I'll bet Costa will be the safest line out there! Incidentally, I was in a car accident once due to human error, some gal ran a red light and hit me. I was driving, again, the next day!

[bobsig]

Hey, I'm already watching the ads for Costa!! I'm betting they'll have some terrific deals to get consumer confidence back. Between that and all the new safety issues that are gonna come from this, I'll bet Costa will be the safest line out there! Incidentally, I was in a car accident once due to human error, some gal ran a red light and hit me. I was driving, again, the next day!

 

Well put! and I doubt you will ever have to worry about a "Sail-By" on Costa ship again! ...maybe a deal on Suites to get the consumers back? I'm in.

[Hunwolf]

What does driving a car (a near necessity) and taking a cruise (a vacation/luxury item) have to do with each other?

 

And isn't it a little distasteful to be talking about possible sales given that people are still missing?

[pdsgt]

What does driving a car (a near necessity) and taking a cruise (a vacation/luxury item) have to do with each other?

 

Let me try to explain it to you, Wolf. More people die in car accidents EVERY day then die in a cruise accident in MANY years. People say that they will NEVER take a cruise again because of this accident. More people die in car accidents EVERY day yet they will still drive a car or ride as a passenger in one. Get it now??

[Hunwolf]

Let me try to explain it to you, Wolf. More people die in car accidents EVERY day then die in a cruise accident in MANY years. People say that they will NEVER take a cruise again because of this accident. More people die in car accidents EVERY day yet they will still drive a car or ride as a passenger in one. Get it now??

 

Taking a cruise is something that people typically save for maybe once a year or less. It's a luxury for many and there are many other ways to spend your vacation $$$.

 

Driving a car is something that most everyone HAS to do. It is a necessity.

 

The comparison is silly and really apples to oranges to be honest.

 

Should one incident deter folks from cruising? Of course not. Should people use equally silly comparisons? Well...no. ;)

[Cruzaholic41]

What does driving a car (a near necessity) and taking a cruise (a vacation/luxury item) have to do with each other?

 

And isn't it a little distasteful to be talking about possible sales given that people are still missing?

 

EXACTLY!! Driving a car is a life's necessity and we accept the risk because we have to. Going on a cruise isn't. Don't worry. Most of us can see the difference.

[reney313]

I haven't bought a Toyota largely due to the accelerator issues. There are plenty of other cars I can buy that I like. Just the same, I likely wouldn't buy a cruise on Costa when there are many other cruise lines that offer what I like. If it were free, I'm unsure-- I might-- and if someone gave me a free Camry, I might take it...but might not.