It's truly not nice to use metaphors like steering around icebergs and bailing out water, but it's difficult not to with Carnival Cruise Lines (CCL) - Get Report, whose shares are sinking yet again on expectations that dividend-slashing, cost-cutting and other efforts won't help in the near term.
Shares of the beleaguered cruise-line operator plunged again on Tuesday after the company announced that it was suspending its dividend and stock buyback program, and also fielding lawsuits related to the coronavirus outbreak aboard several of its ships.
The company disclosed in a regulatory filing that, in addition to the dividend share-repurchase cancellations, it also was cutting costs and pursuing additional financing - and that even with all of its efforts still expects to post a net loss for its fiscal year ending Nov. 30.
Carnival also said it has received and expects to continue to receive lawsuits from passengers aboard its Grand Princess and Diamond Princess cruise ships in February. The Diamond Princess ship ultimately docked in Japan and was quarantined for more than two weeks, with hundreds of passengers becoming ill from the coronavirus.
- Four Passengers Die in Coronavirus Outbreak on Carnival Ship
- Cruise Industry Sailing in Uncharted Waters With Bailout Program
In separate filings, Carnival also said it plans to issue $1.25 billion in stock to help it sustain its operations over the next 12 months as the coronavirus crisis hopefully wanes, and cruise vacation travel resumes.
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