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Carnival Corp & plc reports $72 million second quarter profit

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 June 2013 25 June 2013

Carnival Corporation & plc, the world’s largest cruise shipping company, reported net income of $72 million, or $0.09 diluted EPS for the second quarter of 2013 compared to non-GAAP net income for the second quarter of 2012 of $159 million, or $0.20 diluted EPS.

“For the second quarter of 2013, reported U.S. GAAP net income, which included net unrealized losses on fuel derivatives of $31 million, was $41 million, or $0.05 diluted EPS. For the second quarter of 2012, reported U.S. GAAP net income, which included unrealized losses on fuel derivatives of $145 million, was $14 million, or $0.02 diluted EPS. Revenues for the second quarter of 2013 were $3.5 billion, in line with the prior year.

Carnival Corporation & plc Chairman and CEO Micky Arison noted that second quarter earnings were slightly better than May guidance due primarily to the timing of selling and administrative expenses.

Key metrics for the second quarter 2013 compared to the prior year were as follows:

 On a constant dollar basis, net revenue yields (net revenue per available lower berth day

or “ALBD”) decreased 1.9 percent for 2Q 2013. Gross revenue yields decreased 3.1

percent in current dollars.

 Net cruise costs excluding fuel per ALBD increased 8.8 percent in constant dollars,

primarily due to the timing of dry-dock expenses, vessel repair costs and non-recurring

items which benefitted the prior year. Gross cruise costs including fuel per ALBD in

current dollars decreased 0.1 percent.

 Fuel prices decreased 9.7 percent to $683 per metric ton for 2Q 2013 from $756 per

metric ton in 2Q 2012.

 Fuel consumption per ALBD decreased 5.7 percent in 2Q 2013 compared to the prior

year.

Carnival Corporation & plc to split roles of chairman and CEO

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 June 2013 25 June 2013

Carnival Corporation & plc today announced its plan to split the roles of chairman and chief executive officer. Micky Arison will continue to serve as Chairman of the Board of the company and Arnold W. Donald, a highly experienced and respected business leader who has served on the company’s board for the past 12 years, will assume the CEO role effective July 3.

Arison became CEO in 1979. At that time the company was privately held and operated three cruise ships under one brand, generating $44 million in revenues and carrying approximately 160,000 passengers a year. By 1987, Carnival Cruise Lines had become the world’s largest cruise operator and Arison took the company public. Working in partnership with current vice chairman and COO Howard Frank, Arison led the company through an aggressive expansion that included the acquisition of several iconic cruise brands, including Holland America Line, Costa Cruises, Cunard and Seabourn. In 2003, a merger between Carnival Corporation and P&O Princess Cruises plc – comprised of Princess Cruises, P&O Cruises (UK), P&O Cruises (Australia), and German cruise brand AIDA – was completed, creating the first global cruise operator and one of the largest leisure travel companies in the world. In addition, the company undertook an ambitious schedule of new ship introductions. Under Arison’s leadership, Carnival Corporation & plc has grown to more than 100 ships, carrying 10 million passengers a year and generating more than $15 billion in annual revenues.

In his role as chairman, Arison will continue to provide board level oversight for the company and will remain the company’s largest shareholder. Donald will lead the executive team, initially focusing on achieving the company’s long-term strategic goals while working directly with the operating brand executives. Frank will continue to serve in his current role as vice chairman and COO of the company, supporting Donald in working with the corporate level executive team. The move has received unanimous approval from the company’s nominating and governance committee as well as the full board of directors.

“I have been discussing this with the board for some time now and feel the timing is right to align our company with corporate governance best practices and turn over the reins after 34 years as CEO,” said Arison. “Arnold is an exceptional professional with extensive experience in organizational leadership who will bring a fresh perspective to the company. I have come to value and rely on his judgment and insight during the 12 years he has served on the company’s board and I am very confident in his ability to move the organization forward.” Arison added, “As chairman, I will still be working closely with Arnold to ensure a great future for all our stakeholders.”

Donald’s expansive career includes numerous global leadership roles including a large publicly traded company, private equity firms, governmental appointments and large not-for-profits as well as serving on boards of directors on companies across many business sectors. He has a strong working knowledge of the cruise business gained through 12 years serving on the Carnival board. Donald founded and led Merisant, a company whose products include tabletop sweetener brands Equal and Canderel. He also held multiple senior management roles at Monsanto over the course of 20-plus years, including president of the company’s consumer and nutrition sector and president of its agricultural sector. Additionally, Donald is former president and CEO of the Executive Leadership Council, a professional network and leadership forum for African-American executives of Fortune 500 companies. Donald has also held roles within a number of civic and charitable organizations including serving as president and CEO of the Juvenile Diabetes Research Foundation International. Donald also currently serves on the board of Bank of America Corporation. He will continue to serve on Carnival’s board of directors but will relinquish his committee roles.

“I am honored and privileged to have this opportunity to lead the next stage of growth for Carnival Corporation & plc,” said Donald. “As a board member, I have come to know Micky, Howard and the company well. I have a first-hand appreciation of what it has taken to develop this highly successful business, an understanding for the dynamics and challenges we face, and a great deal of confidence in the company’s management team and their ability to execute. I have enormous respect for Micky as a visionary in our industry, and as the builder and leader of Carnival. I have come to know many of the talented professionals who work within Carnival during my time on the board and I look forward to working with the company’s many stakeholders including our 90,000 employees, 10 million guests, thousands of travel agent partners, vendors and shareholders around the globe.”

Carnival Corporation & plc is the largest cruise company in the world, with a portfolio of cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (Australia) and P&O Cruises (UK).

Together, these brands operate 102 ships totaling 209,000 lower berths with seven new ships scheduled to be delivered between May 2014 and April 2016. Carnival Corporation & plc also operates Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices.

Princess Cruises appoints Gordon Ho as Senior VP of Marketing

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 June 2013 25 June 2013

Princess Cruises has appointed Gordon Ho as senior vice president of marketing. In this newly-created position he will lead the company's global marketing, public relations and digital activities.

Ho brings extensive marketing experience to his new role with Princess, in areas including worldwide creative development, brand management, partnership marketing, digital marketing, CRM and public relations.

"We're delighted to welcome Gordon to Princess and look forward to his contributions supporting our expansion into new international markets as well as strengthening the Princess brand in our established markets including North America, UK and Australia," said Jan Swartz, Princess Cruises' executive vice president. He reports directly to Swartz.

Ho previously spent 18 years at the Walt Disney Company where he last served as executive vice president of worldwide marketing for its $4 billion Disney Studios Home Entertainment division. In that position he created a highly successful global marketing team in North America, Europe, Asia, and Latin America. Most recently he served as chief marketing officer of 24/7 Card and as co-founder and president of MyMovieDeals.com.

He earned his B.S. degree in industrial engineering from Stanford University and an M.B.A. with concentrations in marketing and finance from Northwestern University's Kellogg School of Management.

In related news, David deMerlier, previously vice president of marketing, has been appointed to the new role of vice president of international marketing for the line. Reporting to Ho, deMerlier now oversees Princess marketing efforts throughout Asia, and in the UK and Australia.

Carnival Corp & plc forecast to report second quarter EPS of $1.62 on 25 June

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 24 June 2013 24 June 2013

Carnival Corp & plc, the world’s largest cruise shipping group, is forecast to report earnings per share (EPS)of $1.62 for the second quarter of its current financial year on 25 June.

Estimates of analysts in New York and London range from a low of $1.45 to a high of $2.06. The figure for the corresponding period last year was just $0.20 as it was heavily impacted by the Costa Concordia accident.

The second quarter of the Carnival group covers three months to 31 May.

Carnival UK's Dingle airs thoughts of online's future role

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 18 June 2013 18 June 2013

Carnival UK, which operates the brands of the world's largest cruise shipping group Carnival Corporation & plc in Britain, will increase the role of online functions in the future, but these will take into account requirements of the brands in question, says David Dingle, CEO of the Southampton based company.

New heads of marketing with deep understanding of the online world are being sought for Cunard Line and P&O Cruises brands.

"As instant connectivity, whether it be through mobile phones or tablets becomes the norm rather than a luxury, cruise lines are investing tens of millions of pounds in the provision of broadband service at sea, obtained via satellite connection, to ensure that passengers have the ability to connect with home and work and continue their online activities whilst on board," Dingle told Cruise Business.

"There are internet cafes across the fleet which provide connectivity and all the ships are wi fi enabled. Technology has also played a major part in the cruise booking process. We are about to introduce a number of Cruise Personaliser pre cruise booking options. This will mean that passengers can book speciality dining in advance of joining the cruise, book spa treatments and also pre book from a selection of VIP luxuries for example, strawberries and Champagne in the cabin, Champagne breakfast in bed, flowers and chocolates."

"The travel industry lends itself well to online engagement, as the content is so rich, varied and compelling. Unlike many industries we are privileged to provide an experience that people enjoy and look forward to, and both past and potential cruise passengers love to research and share their experiences as a core part of the anticipation and planning process. However, choosing a cruise can require greater support than a package holiday, so this is where we can really use the online space to help. We know that people who are looking to go on a cruise holiday use the internet a lot in their decision-making process, whether that's to look at photos and videos of possible destinations, or to take a virtual tour of the different ships."

"This is content not only produced by cruise companies like ourselves but also content that has been produced by other passengers. We are certainly investing in online content such as video, interactive tours and useful information that passengers are seeking, and looking at a number of different ways to share this content across different channels such as the website and social media, and devices, such as smartphones and tablets. We are constantly developing and enhancing our award-winning websites to keep up with the rapid pace of the online world, whilst ensuring that we are still catering for those who prefer to have tangible materials such as a paper brochure, magazine and regular print communication directly through the post."

"Cunard and P&O Cruises are brands which have been woven into the fabric of British cruising over the last 175 years, and are amongst the most famous cruise brands across the world. We have a great heritage to preserve and cherish. Any changes always form part of a carefully planned and executed evolution in order to maintain the freshness and relevance of our brands whilst never compromising their core values. It is too early to say exactly what will be seen over the coming months and years, but any work will ensure that P&O Cruises and Cunard are portrayed as strongly appealing and highly differentiated," he concluded.