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Princess Owner’s Shares Fall on Concordia News

Shares of Carnival Corp., owner of Santa Clarita-based Princess Cruises, took a hit on Tuesday in active trading, falling $4.69 a share to $29.60 as Wall Street speculated whether the Costa Concordia disaster off the coast of Italy would put a damper on the cruising sales in coming months. The Concordia is owned by Miami based Carnival Corp, which also owns the local company. Carnival’s stock tumbled 13.7 percent as more than 37 million shares traded, one of the most actively traded stocks of the day. In a statement released Monday, Carnival said the sunk vessel is expected to be out of service for the remainder of the current fiscal year, if not longer. The impact to 2012 earnings for loss of use is expected to be approximately $85 million to $95 million, the company said. The company said it has insurance coverage for damage to the vessel with a deductible of approximately $30 million as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel. Analysts said the Concordia incident could hurt ticket sales, which are entering the busy booking season, also known as the wave season. The Associated Press reported that Susquehanna Financial Group’s Rachael Rothman lowered the ratings of Carnival and Royal Caribbean, also based in Miami, to “Neutral” from “Positive.”

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