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Princess Parent Reports Steep Drop in Earnings

Carnival Corp., the Miami-based owner of Santa Clarita-based Princess Cruises, reported a $139 million net loss for its first quarter, due largely to a write down associated with the loss of the Costa Concordia, a ship that ran aground near the Italian coastline earlier this year, killing 32. The net loss, 18 cents per diluted share, compares to a profit of $152 million, or 19 cents a share, for the same period a year ago. The company’s revenue increased to $3.6 billion from $3.4 billion in the year ago quarter. The company took a $173 million non-cash write off for Ibero Cruises, which operates the Costa Concordia. Carnival does not break out results for the Princess brand, but executives told analysts that the North American business should see a modest improvement in yield this year, or what the company makes from passengers after expenses. Carnival said net ticket yields for the North American business, which would include Princess, were up 5 percent, due in part to the rebounding American economy. Princess did not comment on its contribution to its parent company’s earnings. Chief Operating Officer Howard S. Frank told analysts earlier today that the Costa Concordia accident had a “profound effect on our business and, indeed, the business of the entire cruise industry.” He said the impact has been mostly on European operations. “It seems that it will take more time for those markets to return to normal booking levels.” Shares of Carnival fell .38 cents and closed at $30.67, down from more than $35 a share before the Concordia incident in January. Judy Temes

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