Even if Europe sinks amid a sovereign debt and bank capital spiral, Southampton, England-based Carnival Cruise Lines (CCL) will float to safety on its North American revenue, which accounts for more than half of its $14.5 billion in overall annual sales.
The cruise and passenger ship line with a European legacy that stretches back to the 1820s operates the iconic British Princess and Orient and Dutch Holland America ship lines, but has found its biggest business in the U.S. While its shares have fallen nearly 30% this year as investors question whether, amid debt fears, consumers will want to spend on cruises its outperformed Miami-based competitor Royal Caribbean Cruises (RCL). The company's revenue of $14.5 billion and gross profit of $7 billion are nearing 2008 peaks, signaling that if the worst of economic fears weren't to materialize, the company might be a rebound play.
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