Royal Caribbean sees profit hit on Grandeur fire

Royal Caribbean sees hit of 10 cents to earnings per share due to fire on Grandeur

Associated Press

Royal Caribbean Cruises Ltd. said a fire aboard the Grandeur of the Seas will cost it about 10 cents per share for the year.

On average, analysts surveyed by FactSet expect the company to earn $2.46 per share for the year.

The fire, which happened overnight Monday while the ship was in the Bahamas, did not result in lost power, and the fire was extinguished in about two hours. Royal Caribbean promised the 2,200 passengers on board full fare refunds and certificates for a future cruise.

The Miami-based company said Wednesday the impact to its profit is "relatively high" because the incident took place during the premium summer travel season.

Besides the interrupted trip, five other voyages aboard the Grandeur of the Seas have been canceled. The ship will take about six weeks to be repaired, and it is expected to return to service July 12.

Royal Caribbean shares fell 61 cents to close at $35.10. The stock is down 2.9 percent this week, but has rallied nearly 42 percent over the past year.

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