Carnival Shares Lose 20% After Shipwreck

Carnival Corp.UK:CCL -17.04% shares dropped 20% in early trading Monday in London, selling off in their first trading session since the company’s Costa Concordia ship capsized off the coast of Italy on Friday.

Carnival said it expects the financial impact from the wreck, in which five people died, will cost the company up to $95 million in profit for 2012 or about 12 cents a share.

Broker Morgan Stanley downgraded the stock to equal weight from overweight and cut its earnings outlook, adding that “it could be materially worse if the investigation finds industry safety standards need improving and/or consumers stay away for a prolonged period.”

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