News Disney plans to accelerate Parks investment to $60 billion over 10 years

[lentesta]

The bulk of payments for Cruise ships are at the order phase and the delivery phase.

Disney announced that it was ordering 4 cruise ships in August 2024. With their 2025 Fiscal year starting in October, it is likely that the deposit for these ships would come due in FY2025.

Is there something in the 10K that would indicate when Disney locked-in the construction price?

I ask because IIRC they try to optimize the timing based on the cost of steel. I'm not sure how that works.

 

[monothingie]

Is there something in the 10K that would indicate when Disney locked-in the construction price?

I ask because IIRC they try to optimize the timing based on the cost of steel. I'm not sure how that works.

Disney lumps in DCL with the rest of the experiences segment so there is no direct breakdown.

I looked at the RCCL's 10-K for comparison, since that's all they do. They note the following for their material cash requirements for the FY with regard to ship construction.

Amounts are based on contractual installment and delivery dates for our ships on order. Included in these figures are $4.5 billion in final contractual installments, which have committed financing covering 80% of the cost of the ships on order for our Global Brands, all of which include sovereign financing guarantees. Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent.

FY 2024 it was $1.9B
FY 2025 (Est)$2.3B
FY 2026 (Est)$1.3B

It seems as though each company can have different priorities. For RCCL, their main concern is optimizing their long-term debt obligations as a result of these massive expenditures. That being said, whatever individual corporate priorities are present, seem to be ironed out during contract negotiations. It seems that the bigger priority is to secure production slots, given the length of time to build and limited number of commercial cruise ship production yards.

 

[BrianLo]

I ask because IIRC they try to optimize the timing based on the cost of steel. I'm not sure how that works.

The ships are built in Germany, they are not subjected to American tariffs and Canada will likely shunt a certain portion of its steel to that market. I expect steel prices to actually marginally drop in the EU.

 

[JoeCamel]

The ships are built in Germany, they are not subjected to American tariffs and Canada will likely shunt a certain portion of its steel to that market. I expect steel prices to actually marginally drop in the EU.

Germany is no longer known for it's steel? That is the world's loss

 

[BrianLo]

Germany is no longer known for it's steel? That is the world's loss

You’ve lost me? I never said it wasn’t.

Its own steel will also be marginally cheaper as the American market tries to reduce importation demand.

 

[JoeCamel]

You’ve lost me? I never said it wasn’t.

Its own steel will also be marginally cheaper as the American market tries to reduce importation demand.

That was my question, if it is being made in Germany why not use German steel it is (or was) some of the best in the world.
I can understand that steel through Canada would be cheaper and that is the largest cost in a ship but I'd think when in Germany do like the Germans do

Maybe you mentioned Canada as an influence on the world market not that they were shipping steel to Germany to be used and I didn't get that

 

[BrianLo]

That was my question, if it is being made in Germany why not use German steel it is (or was) some of the best in the world.
I can understand that steel through Canada would be cheaper and that is the largest cost in a ship but I'd think when in Germany do like the Germans do

Maybe you mentioned Canada as an influence on the world market not that they were shipping steel to Germany to be used and I didn't get that

Yup, meant the latter! Just that outside the US I suspect the price of steel goes slightly down.

 

[JD80]

You are correct. It's mostly what they've been spending in Capex shortly before the pandemic.

Altho... what they were spending on Capex shortly before the pandemic is a heck of a lot more than what they spent in the previous decades of the Great Dry Spell.

Someone should list all the stuff built right up to the start of COVID which also includes the capitol outlay for what was about to happen at EPCOT. It's a lot.

 

[HauntedPirate]

I wish I could find my post with the combined net profit of the Parks division for the decade before it became DPEP, and thus muddled with consumer products, compared with what they invested in the domestic parks. The numbers, IIRC, were astounding. And not tipped towards park investment in the slightest.