Shares of Royal Caribbean Cruises fell sharply after the cruise company reduced its 2015 profit outlook, citing rising fuel prices and a strong US dollar.
The company reported net income of USD45.2 million for 1Q15, up from USD26.5 million in 1Q14. However, adjusted net income was USD45.2 million for 1Q15, down from USD46.1 million in the same period last year.
Currency-adjusted net yields fell 1% in 1Q15 versus 1Q14, better than the 1.5-2% decline previously predicted by the company.
Related news:Royal Caribbean embraces scrubbers
“Strong close-in demand for Caribbean sailings catapulted yields over the top end of guidance and more than offset weaker onboard sales from our internationally sourced guests,” the company said, noting that because “the majority of onboard revenue sales are priced in US dollars, the strengthening of the dollar reduced the purchasing power of many of our internationally sourced guests.”
For full-year 2015, Royal Caribbean has significantly reduced its profit forecast to USD4.45-4.65/share, from USD4.65-4.85/share it had previously predicted. The strengthening dollar and higher fuel costs are expected to reduce full-year profits by USD79.5 million.
“The business continues to perform well, despite the currency volatility,” said chief financial officer Jason Liberty.
NYSE-listed shares of Royal Caribbean fell 7% in early trading on 20 April following the disclosure of the lower profit forecast.
This post was sourced from IHS Maritime 360: View the original article here.