February 06, 2007


MIAMI - Royal Caribbean Cruises Ltd., the world's second-largest cruise line, on Monday posted a fourth-quarter profit from year-ago loss, on lower cruise costs (Operative words: LOWER CRUISE COSTS) and increased revenue.

But Royal Caribbean shares sank more than 5 percent, largely based on company statements that its bookings so far in the busy January-to-March wave season were not encouraging, analysts said.

…Shares fell $2.33, or 5.1 percent, to close at $43.51 on the New York Stock Exchange. Joe Hovorka, an analyst with Raymond James & Associates, said the stock likely was falling because of a continued weakness in the Caribbean market that has lasted more than a year.

…Hovorka said sluggishness with Caribbean tourism is being seen throughout the leisure industry. "There's a broader weakness in discretionary spending for consumers" in the Caribbean, which is seen as an entry level cruise market, Hovorka said.

…For the first quarter of 2007, the company currently forecasts net yields will decrease in a range around 3 percent compared to the first quarter of last year. Royal Caribbean said its net cruise costs on a per available passenger-cruise-days basis will increase 4 to 5 percent...

Read Entire Article Here

No comments: