Tuesday, July 25, 2000

Record profits for Royal Caribbean
"We are pleased to report record profits again this quarter," said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd. The company today reported net income for the second quarter of 2000 of $108 million, or $0.56 per share, compared to $85 million, or $0.47 per share in the same quarter of 1999, which included a $14 million charge for a non-recurring item.

Revenues for the second quarter of 2000 were $680.7 million against $617.7 million for the same quarter in 1999. The increase in revenues was due primarily to an 11% increase in capacity. Occupancy was 106.1% in the second quarter, compared to 104.8% in 1999. Net revenue yields (net revenue per available passenger cruise day) were up 2%.

Net income for the six months ended June 30, 2000, increased 22% on a 13% increase in capacity. Net income was $213.8 million or $1.11 per share, compared to $175.5 million or $0.96 per share for the same period last year. This increase is primarily due to a year over year increase in capacity and net yield improvements. Revenues increased 13% to $1.4 billion for the six months ended June 30, 2000, compared to $1.2 billion for the same period last year. Occupancy for the first six months was 103.9%, compared to 103.4% the prior year.

Fain said that yield performance in the current competitive pricing environment, was "especially noteworthy."

The results, he continued, "reflect the strong demand for our product, a job well done by our revenue management team and the underlying strength of the industry fundamentals."

But his expectations for the second half of the year remain "basically unchanged, with a highly competitive pricing environment and yields less than last year."

Litton wins bridge systems order for Portuguese patrol boats
Litton Marine Systems has won orders to supply fiber optic gyrocompass and radar systems for 12 new patrol boats being built for the Portugal Customs Brigade.The new 16.5-m high-speed vessels are scheduled to enter service starting in September 2000.

The 12 vessels, under construction at Conafi Shipyard, will be fitted with Litton SR 2100 fiber-optic gyrocompasses and Litton Decca BridgeMaster E 250 X-band radars. The order was placed through SICOM -Sistemas de Comunições, Lda, Litton's sales and service representative in Portugal. SICOM will also provide support for installation, service and training.

According to J. Nolasco DaCunha, vice-president of marketing and customer support, this is one of the largest single orders received by Litton for the new-generation fiber-optic gyro system, which was introduced in 1998. The fiber-optic gyro provides reliable operation
under high-dynamic conditions, has no moving parts and requires no maintenance. It is a fraction of the size and weight of a traditional


Horizon Offshore reports second quarter earnings
Horizon Offshore, Inc. today reported net income for the quarter ended June 30, 2000, of $1.6 million, or $0.08 per share. This compares with net income of $2.3 million, or $0.12 per share, for the second quarter of 1999. For the second quarter of 2000, the company reported gross profit of $6.5 million, or 17.9 percent, on contract revenues of $36.6 million, compared with gross profit of $6.8 million, or 29.1 percent, on contract revenues of $23.4 million in 1999.

Horizon provides marine construction services to the offshore oil and gas industry, primarily in the Gulf of Mexico. Its fleet is used to perform a wide range of marine construction activities, including installation of pipelines and the installation and abandonment of production platforms.

Horizon reported net income for the six months ended June 30, 2000, of $1.3 million, or $0.07 per share, which is net of a $1.4 million, or $0.07 per share, cumulative effect of an accounting change affecting depreciation expense. This compares with net income of $1.7 million, or $0.09 per share for the six months ended June 30, 1999. Gross profit was $7.7 million or 14.6 percent on contract revenues of $52.5 million for the first six months of 2000, and gross profit was $9.1 million or 25.4 percent on contract revenues of $35.8 million for the first six months of 1999.

"Our second quarter results reflect an improvement in the marine construction market over the first quarter and a strengthened demand for our services. The enhancement of our equipment capabilities, the performance of our people and our commitment to international expansion have all contributed to our ability to meet this increased demand,'' said Bill Lam, Horizon president and chief executive officer.

"The marine construction industry, during the second quarter, remained competitive. However, as demand for our services increases in the second half of 2000 and into 2001, as the fundamental drivers of our segment point to, we should continue to see improved results in the future,'' said Lam.

Canadian provincial premiers to meet on shipbuilding policy
The premiers of Canad's four Atlantic provinces will take part in a forum on shipbuilding this fall in St. John's, Newfoundland
Newfoundland Premier Brian Tobin says industry and worker representatives will also be involved.

Tobin said that if everyone can hammer out a reasonable approach to helping Canadian shipyards, the federal government will have to take notice.

Marad releases study on high speed ferries
The Maritime Administration (MARAD), in cooperation with the Center for the Commercial Deployment of Transportation Technologies (CCDoTT) and Louisiana State University's National Ports and Waterways Institute, has released Phase II of a study, entitled High Speed Ferries and Coastwise Vessels: Evaluation of Parameters and Markets for Applications. (CCDoTT is administered by MARAD and the U.S. Transportation Command.)

The program's goal is to develop a commercially viable coastal shipping system that could relieve congestion on land-based transport arteries and, at the same time, be utilized for national defense emergencies or contingencies. Phase I was dedicated to the definition of the scope of the overall program, which was formulated in cooperation with an industry Advisory Board, representing shipping lines (carriers), ports, military planners (TRANSCOM), shipyards and Federal agencies.

This phase addresses four tasks: (1) assessment of cargo potentials, including cargo flows served by land-based and marine transport modes; (2) review of available and mature designs of vessel and port systems; (3) analysis of several operating systems, including performance and cost; and (4) assessment of military application.

Copies of the report may be obtained from MARAD's Division of Domestic Shipping, Office of Ports and Domestic Shipping, 400 - Seventh St., SW, Room 7201, Washington, DC 20590, tel.: (202) 366-4357; email: [email protected] The report also will be available on the Center for Commercial Deployment of Transportation Technologies' web site: www.ccdott.org.



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