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Carnival Corp. & plc reported net income of $264
million, or 33 cents per share, for the second quarter ended May 31,
a drop of 32 percent over the $390 million, or 49 cents per share,
reported in the same period last year. Revenue was $2.9 billion
compared to $3.4 billion in the second quarter 2008.
Carnival Corp. Chairman and CEO Micky Arison said the
results were better than the company’s March guidance due primarily
to lower-than-expected net cruise costs and better-than-expected
pricing on close-in bookings. This was partially offset by higher
fuel prices and the impact from disruptions of its Mexican cruises
in response to the U.S. Centers for Disease Control and Prevention
recommendations against non-essential travel to Mexico, which
reduced second-quarter earnings by approximately 3 cents per share.
“We were pleased with the quarterly operating
results in light of the current economic environment,” Arison said.
“During the quarter, our operating companies remained focused on
reducing costs which is expected to continue through the remainder
of the year.” A variety of energy conservation programs resulted in
a 6 percent reduction in fuel consumption during the quarter, which
helped to mitigate some of the recent fuel price increases.
“During the quarter, we also made great strides on
our strategic initiatives to better position the company for the
future,” Arison said. Carnival continued to expand its global
presence in the second quarter by deploying a second vessel in
China and launching three new vessels for its European brands --
AIDA Cruises’ 2,050-passenger AIDAluna and Costa Cruises’
2,260-passenger Costa Luminosa and 2,990-passenger Costa Pacifica.
The company also entered into $1.7 billion of
financing since the first quarter, including a 550 million euro loan
from the European Investment Bank (EIB), to help finance Costa’s
newbuilding program. This is the first time the EIB has provided
capital to the cruise sector. “Since the start of the year we have
completed more than $2.8 billion in financing at very favorable
rates, which clearly demonstrates our ability to access capital in
very difficult credit markets,” Arison said.
Since March, Carnival said booking volumes for the
second half of 2009 are running 26 percent ahead of the prior year.
Although booking levels for the remainder of the year are still
behind, the higher booking volumes have enabled the company to close
the gap to approximately 3 percentage points from last year’s
levels. However, ticket prices for these bookings are at
substantially lower levels. “As we have progressed throughout the
year, booking volumes have continued to accelerate with less
discounting, as consumers have come to recognize the extraordinary
value proposition our cruise vacations represent,” Arison said.
The company now forecasts full-year 2009 earnings
per share to be in the range of $2 to $2.10, compared to its
previous guidance range of $2.10 to $2.30. “Higher forecasted fuel
prices and the impact of the CDC travel advisory have reduced 2009
earnings by approximately 40 cents per share, but the midpoint of
our guidance was reduced by only 15 cents per share as a result of
strengthening yields in other deployments, favorable currency
movements and lower costs,” Arison said. Based on current fuel
prices and currency exchange rates, the company expects
third-quarter earnings to be in the range of $1.15 to $1.19 per
share, down from $1.65 per share in 2008. For more information,
visit www.carnivalcorp.com. |
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