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Royal Caribbean profit climbs as industry rebounds

Published on NewsOK Modified: January 27, 2014 at 8:44 am •  Published: January 27, 2014
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NEW YORK (AP) — Royal Caribbean signaled a rebound in the cruise industry Monday by posting a fourth-quarter profit of $7 million, compared to a loss during the same quarter last year of $393 million.

The company attributed the improvement to stronger sales onboard its ships and demand for last-minutes bookings in Europe and Asia.

Net income totaled 3 cents a share, compared with last year's loss of $1.80. Excluding restructuring charges, net income totaled 23 cents a share, beating the estimate of 18 cents from Wall Street analysts surveyed by FactSet.

"Six months ago we said we thought we had reached an inflection point and these figures clearly bear that out," CEO Richard D. Fain said in a statement. "It has been a challenging year, but the fact that we have achieved our guidance from a year ago nicely demonstrates the strength of our business."

The outlook for 2014, Fain said, "is looking highly promising." Royal Caribbean expects its adjusted earnings per share to be $3.20 to $3.40 per share this year, up from $2.40 last year and $1.97 in 2012. Analysts are forecasting an adjusted profit of $3.21.

Revenue at the Miami-based company rose 2.7 percent to $1.85 billion. Royal Caribbean Cruises Ltd. is the world's second largest cruise operator with 41 ships. Its brands include namesake Royal Caribbean, Celebrity Cruises and Azamara Club Cruises. Six additional ships are planned.

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