The Euro Disney Corporation, acknowledging that its elaborate theme park had not performed as strongly as expected, announced Thursday that it would sustain a net financial loss of unpredictable scale in its first financial year.
At the time of the April opening of the park, which stands on a 4,800-acre site 32 kilometers (20 miles) east of Paris, Euro Disney officials said they expected to make a small profit for the financial year ending September 30. But since then the park has been hit by a number of problems.
"We were geared up for a very high level of operations," John Forsgren, the company's chief financial officer said in a telephone interview. "It has been very strong, but not as strong as we geared up for."
"While attendance is very strong," he said, "our cost levels do require adjustment for the current revenue level."
The parent company, Walt Disney Corporation, said Thursday that its income rose 33 percent in the quarter. But it warned investors against expecting profits soon from Euro Disney, of which it owns 49 percent.
Euro Disney said that although attendance levels had been high, "the company anticipates that it will sustain a net loss for the financial year ending September 30, 1992". It added that "the amount of the loss will depend on attendance and hotel use rates achieved during the remaining portion of the critical European summer vacation period". The announcement amounted to an extraordinary reversal for Euro Disney, which opened amid immense celebration and widespread predictions of immediate success.
At the time of the opening, on April 12, the company's shares were trading at 140.90 francs ($28.07), and had been as high as 170 francs earlier in the year. They dropped 2.75 percent Thursday to close at 97.25 francs. Mr. Forsgren said he thought the market had "reacted a bit emotionally to preliminary information". He added, "By all objective standards the park is very successful. The long-term acceptance is strong, the rest is just details."
The company said that 3.6 million people had visited the park from April 12 to July 22, a performance superior to that of comparable start-up periods at other Disney theme parks. But it warned that, given the likely strong seasonal variation in attendance, it was not possible to predict future attendance or profits.
Reacting to the announcement, stock market expert Paribas Capital Markets Group issued a "sell" recommendation on Euro Disney stock, saying that attendance levels for the period were 15 percent below its expectations and profit from sales of food and other goods was 10 percent below. It predicted that the company would lose 300 million francs in the current financial year and continue losing money for two more years.
The main problem confronting Euro Disney appears to be managing its costs and finding an appropriate price level for its over 5,000 hotel rooms. Clearly, costs have been geared to a revenue level that has not been achieved, and the company is beginning to drop hotel prices that have been widely described as excessive.
Mr. Forsgren said the number of staff, now at 17,000, would "come down significantly in the next two months, mainly through the loss of seasonal employees". Of the current staff, 5,000 are employed on a temporary basis, he said.
He also acknowledged that the lowest-priced rooms at the resort had been cut to 550 francs ($110) from 750 francs at the time of the opening, and that some rooms were being offered at 400 francs for the winter season. Analysts believe hotel use has been running at about 68 percent of capacity, although it is currently over 90 percent.
"The key issue is costs, " said one financial expert. "They have no idea what their winter attendance levels will be and they're battling to get costs to an appropriate level. The stock's still too expensive, but I think in the long term they'll get it right."
Still, huge doubt hangs over the company's plans to keep the theme park open through the cold European winter—something no other theme park in Europe has ever attempted. Last month, the company said it was having difficulty attracting people from the Paris region. Mr. Forsgren said that French attendance was improving and accounted for 1 million of the 3.6 million visitors, with most of the rest coming from Britain and Germany. Only 1 percent of visitors have been American.
For its third quarter ending June 30, the first in which the park had been operating, the company announced revenues of 2.47 billion francs ($492 million), but gave no profit or loss figures in line with the French practice of only giving such figures at year's end. In the first half, the company earned 75 million francs, mainly from investment income and sale of construction rights on its site.
The primary purpose of a stock split is to ()
A. increase paid-in capital
B. reduce the market price of the stock per share
C. increase the market price of the stock per share
D. increase retained earnings
That stock exchange lists ______ 1,700 individual stocks.
A.approximately
B.appropriately
C.approvingly
D.reproachfully
A.Quality inspection stock
B.Non-valuated GR blocked stock
C.Valuated GR blocked stock
D.Blocked stock
E.Unrestricted-use stock
Which of the statements is true?
A.The stockholder can sell his stock to anywhere at anytime.
B.There were no stock exchange in England in the 1700's.
C.The price of stock is not stable.
D.The stockbrokers do the transaction without charging for the stockholders.
The stock ______ in value should be sold.
A.which has not increased
B.has not increased
C.not been increasing
D.who has not increased
The first European stock exchange was established in Antwerp, Belgium(比利时) , in 1531. There were no stock exchanges in England until the 1700' s. A man wishing to buy or sell shares of stock had to find a broker(agents) to transact his business for him. In London, he usually went to a coffee house, because brokers often gathered there. In 1773, the brokers of London formed a stock exchange.
In New York City, brokers met under an old button-wood tree on Wall Street. They organized the New York Stock Exchange in 1792. The American Stock Exchange, second largest in the United States, was formerly called the Curb Exchange because of its origin on the streets of New York City.
A stock exchange is a market place where member brokers buy and sell stocks and bonds (债券) of American and foreign businesses on behalf of the public. A stock exchange provides a market place for stocks and bonds in the same way a board of trade does for commodities. The stockbrokers receive a small commission on each transaction they make.
The stockholder may sell his stock wherever he wants to unless the corporation has some special rule to prevent it. Prices of stock change according to general business conditions and the earnings and future prospects(前景) of the company. If the business is doing well, the stockholder may be able to sell his stock for a profit. If it is not, he may have to take a loss.
In the 1600's, if a man wanted to buy or sell shares of stock, he had to do it through ______.
A.the government
B.himself
C.a broker
D.the stock exchange