World Health Organization Names Virus COVID-19
Cruise giant Carnival Corp. warned that the coronavirus crisis will have a material impact on its financial results, as the leisure industry reels from quarantines, travel restrictions and growing fears.
The Miami-based company can’t yet estimate the full effect of the deadly virus on its results for the current fiscal year, it said in a statement Wednesday. Carnival said a complete suspension of its operations in Asia through April — a step it doesn’t currently plan — would lower fiscal 2020 earnings by 55 cents US to 65 cents US a share.
Carnival shares swooned in premarket trading immediately after the release of the statement but recovered quickly, up two per cent to US$43.80 at 9:37 a.m. in New York.
The company said it’s examining contingency plans to mitigate the impact of the crisis and will provide an update with its first-quarter earnings release in late March.
Carnival ships have suffered an array of woes from the coronavirus and fears of its spread. The company’s Diamond Princess and its 3,700 passengers are quarantined in the port of Yokohama, Japan, as authorities battle an increasing number of infections onboard.
The Westerdam, operated by Carnival’s Holland America Line, has been turned away by five ports on concerns that its passengers and crew might be carrying the virus, even though there are no confirmed or suspected cases on board. Cambodia on Wednesday agreed to accept the vessel on Thursday.