Royal Caribbean Shares Lifted By Cost Cutting Efforts

Jul 23, 2008 (financialwire.net via COMTEX) -- RCL | Quote | Chart | News | PowerRating -- July 23, 2008 (FinancialWire) Shares of cruise operator Royal Caribbean (NYSE: RCL | Quote | Chart | News | PowerRating) (Current Market Cap: US$5.55 Bil.) surged 5% after the company said that it is cutting 400 jobs and taking other steps to save around $125 million per year.

Royal Caribbean shares jumped $3.40, or 14.9%, to $26.28 after the company said that high fuel costs would force them to cut some extra programs and slash some onshore jobs. In a conference call with investors on Tuesday, Chairman and CEO Richard Fain said the current situation, including soaring fuel prices and the economic downturn, "is unlike anything we've experienced in our industry's history."

Royal Caribbean reported that second-quarter earnings dropped 34% from the same period a year earlier due largely to a 55% increase in its fuel costs.

The company expects full-year earnings to range from $2.55 to $2.65 per share, with net yield growth of 3% to 4%.

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