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Cruise ship owner warns of £60m hit to business

Carnival, owner of the Costa Concordia, says that loss of use alone will have a £60m impact on 2012 earnings, and says it anticipates further costs relating to the Italian disaster

Carnival Corp, the owner of the cruise ship that capsized off Italy’s west coast, said on Monday it estimated that loss of use alone would mean a m (£60m) hit to 2012 earnings.

The group, which said it was providing the information due to financial disclosure rules, said it also anticipated further costs to the business that it could not yet determine after the Costa Concordia hit rocks close to the island of Giglio. The company’s shares were down nearly 20% on Monday morning at £18.70, the biggest faller on the FTSE 100.

“The vessel is expected to be out of service for the remainder of our current fiscal year if not longer,” it said in a statement to the London Stock Exchange.

“For the fiscal year ending 30 November, the impact to 2012 earnings for loss of use is expected to be approximately -m or {content}.11-{content}.12 per share.”

It said it had insurance coverage for damage to the vessel with a deductible of around m.

“At this time, our priority is the safety of our passengers and crew,” said Micky Arison, chairman and chief executive of Carnival Corporation.

“We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives.”

Carnival Corp is the parent company of Costa Cruises.

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