Earnings $1.24M at Star Cruises

Advertiser Staff and News Services

Startup costs for Norwegian Cruise Line's new Hawai'i operations were $2.2 million in the first quarter, according to financial results released by its parent company Star Cruises Ltd.

Star Cruises, the world's fourth-largest cruise line operator, said it returned to profit in the first quarter after it cut costs.

Net income was $1.24 million, or 0.02 cent a share, compared with a loss of $2.2 million, or 0.04 cent, the Hong Kong-based company said in an e-mailed statement. Sales fell 5.1 percent to $390.7 million from $412 million.

Star Cruises, which operates a fleet of 17 ships under brands including Norwegian Cruise Lines and Orient Lines, said it benefited from lower fuel prices during the quarter, as total costs and expenses fell about 4.8 percent. It also had lower interest expenses.

Star Cruises said its Pride of America ship, which was damaged during construction in Germany in January, may be ready for service in the middle of 2005. The company also said it has driven orders for its new Hawaiian cruise operations with "a large TV advertising campaign."

New casinos opening in Macau will add to the challenges the company faces in Asia, Star Cruises said.

Bloomberg News contributed to this report.