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    Accounting problem hurts Royal Caribbean shares

    NEW YORK (AP) — Shares of cruise operator Royal Caribbean Cruises Ltd. fell on Thursday after the company revealed that an accounting error would force a revision of its full-year profit guidance.

    THE SPARK: On Wednesday it reported a second-quarter profit, but said it would have to revise prior statements because of an error in the way it accounted for interest expenses for amortizing financing fees. It reduced its full-year earnings guidance by 10 cents per share even without the accounting change, and by 20 cents per share with the change.

    THE BACKGROUND: Royal Caribbean was already dealing with a drop in demand for cruises in the Eastern Mediterranean because of unrest in Egypt and Libya. It's also facing higher fuel costs. Its shares have fallen 35 percent since January.

    SHARE ACTION: Down $3.26, or 9.1 percent, to $32.50 in afternoon trading. Their 52-week low was $23.50, in July 2010.

     

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