Ahmed Elbatrawy

Carnival alters forecast after cruise ship tragedy

Carnival dropped its forecast for 2012 and said it will lose money because of the deadly crash of the liner Costa Concordia.

Carnival dropped its forecast for 2012 and said it will lose money because of the deadly crash of the liner Costa Concordia.

NEW YORK (CNNMoney) — Carnival Corp. reversed its 2012 forecast to a loss Monday, blaming the fatal accident of a cruise ship off the coast of Italy earlier this month.

Carnival is now forecasting a loss, in the range of $375 million to $395 million, for the full year 2012. The company said that’s equal to a loss of 48 to 51 cents in fully diluted earnings per share.

The revised forecast reverses one from December that expected Carnival’s earnings for the full year would be in the range of $2.55 to $2.85 per share.

The turnaround is the result of the accident on Jan. 13 of the Costa Concordia, which ran aground off the coast of Isola del Giglio, Italy. The ship was severely damaged and capsized in the shallow waters. Seventeen people died in the crash, according to the latest death toll.

“The ship remains grounded and partially submerged off the coast,” said Carnival in a statement. “The cause of the accident is currently under investigation by the Italian authorities.”

In addition to its losses stemming from the wrecked ship, Carnival said that bookings have dropped off since the accident.

The ship is insured, with a deductible of $40 million. The company said it’s still trying to determine whether the Costa Concordia can be repaired and returned to use.

Carnival’s (CCL) stock has dropped about 7% since the crash. It was down 1% in Monday trading.

In contrast, shares of the company’s rival, Royal Caribbean Cruises (RCL), have jumped 9% over the past month. To top of page

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Ahmed Elbatrawy