Royal Caribbean CruisesLtd (RCCL), the world's second largest cruise shipping gropup, has reported a second quarter net loss of $3.6 million, or 0.02 per share, compared to a profit of $935 million, equal to $0.43 per share, in the same peruiod lsst year.
"Since the company's April guidance, the strengthening of the U.S. Dollar and decreases in fuel pricing have essentially offset one another. Business demand remains solid in the Caribbean and Asia, but larger than anticipated discounting has been required in Europe which has resulted in a one percentage point decline to the midpoint of the company's Constant-Currency Net Yield expectations for the year. The company has been able to offset more than half of the yield declines through additional spending reductions,'"RCCL said in a statement.
Looking ahead to the third quarter, RCCL said Net Yields are expected to decrease between (1%) and (2%) on a Constant-Currency basis and approximately (5%) on an As-Reported basis. Earnings per share are expected to be within a range of $1.40 to $1.50.
For the full year 2012, Net Yields are expected to increase 2% to 3% on a Constant-Currency basis and be between flat and up 1% on an As-Reported basis. Earnings per share are expected to be within a range of $1.70 to $1.80. "The steady drumbeat of negative news emanating out of Europe is certainly having an impact," said Richard D. Fain, chairman and chief executive officer. Fain continued, "As a result, we are seeing pluses and minuses in the different geographical markets – North America is holding up reasonably well; Asia is a big plus; but Europe is a pretty consistent minus. Overall we have seen about a 100 basis point drop in our yield projections, but we expect to offset over half of this decline with lower spending."