Not to Expect Profits Soon from Euro Disney不要期待欧洲迪斯尼会很快盈利.docVIP

Not to Expect Profits Soon from Euro Disney 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 30 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 companys 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 companys 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 that by all objective standards the park is very success