Royal Caribbean's net profit falls to US$84.7m

Royal Caribbean Cruises Ltd, the world's No 2 cruise operator, reported a narrower quarterly profit on Monday due to a doubling of fuel costs, and announced a cost-cutting plan to save US$125 million a year.

Too much of our profitability is being eroded by the increase in fuel prices, chairman and CEO Richard Fain said.

Net income fell to US$84.7 million, or 40 cents per share, from US$128.7 million, or 60 cents per share, a year earlier. Over the period, fuel prices rose 55 per cent.

As part of the cost-savings, the company said it would eliminate about 400 onshore positions. It will also discontinue some non-core operations.

As a result of the restructuring, the company said it expected to incur charges of about US$15 million, or 7 cents per share, in the third quarter.

Source: http://www.businesstimes.com.sg