NEW YORK -- Cendant said
its travel and real estate businesses lost $20 to $30 million in
revenue because of Hurricane Katrina, and the company reduced its
2005 earnings per share forecast by $0.20.
In addition to the lost
revenue, the hurricane also clipped $15 to $40 million in 2005
pretax income because of asset impairment losses, primarily related
to timeshare properties and rental cars, Cendant said.
The lost revenue and
damages to timeshares and rental cars, amounting to a $35 to $70
million hit to pretax income in 2005, was Cendants preliminary
estimates of the damages.
The impact of the entire
loss, which will be recorded in 2005, however, will be offset by
insurance, with Cendant estimating that it will recover some $10 to
$35 million. Some of that insurance money, though, will only show
up in 2006 results, the company said.
Cendant revised its
full-year 2005 projections for earnings per share, pegging it at
$1.11 to $1.18.
To contact the
reporter who wrote this article, send e-mail to Dennis Schaal at [email protected].