Storms to Trim Disney Per-Share Profit by a Penny

Back-to-back hurricanes in Florida will shave about a penny a share off Walt Disney Co.’s fiscal fourth-quarter earnings, the company said Wednesday.

However, Chief Financial Officer Tom Staggs told investors that Disney remains on track to meet its financial targets for the fiscal year ending Sept. 30. Disney has said it expects its full-year profit to grow more than 50%.

Speaking at a Morgan Stanley media conference, Staggs confirmed analyst estimates that Hurricanes Charley and Frances would cost Disney about $30 million to $45 million in pretax earnings because of lost business at Walt Disney World in Orlando and at the company’s cruise line.

Analysts surveyed by Thomson First Call estimate, on average, that Disney will have a quarterly profit of 18 cents a share.

The storms caused only minor damage to the company’s signature resort in Orlando, but they did hurt attendance.

Over the busy Labor Day weekend, Frances forced Disney to close its Magic Kingdom and Epcot parks for two days and kept the Animal Kingdom and Disney-MGM Studios parks closed for three days. The storm forced Disney Cruise Line to cancel one of its sailings and caused damage to Castaway Cay, Disney’s island in the Bahamas.

During Charley last month, Disney closed Animal Kingdom for a day.

Investors appeared unfazed. Disney rose 20 cents to $22.89 on the New York Stock Exchange.