News

Yields at North American brands heading for “modest improvement” - Arison

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 09 March 2012 09 March 2012

Carnival Corp & plc Chairman and Chief Executive Officer Micky Arison commenting on the outlook after the group published result for the three months to 29 February by saying that North American brands enjoy a slight rise in yields, but the ones in Europe – apart from Costa – are likely to see a slight drop.

"Our base of business for 2012 is solid and booking volumes have gradually improved, which we believe is a testament to consumer confidence in the cruise industry's long-standing record of exceptional safety. Despite the slowdown in bookings, all of our North American brands are still expecting a modest yield improvement in 2012 while our European brands, excluding Costa, are expecting to have slightly lower yields due in part to the slowing European economies.

Overall, based on current pricing trends, any consumers holding out for deeper than normal discounts may be disappointed."

Arison also noted that the company's cash flow remains strong and is expected to approach $3.3 billion in 2012 (including net insurance proceeds), which is sufficient to fund this year's capital expenditure requirements and expected dividend distributions without the need for additional financing.

Carnival says bookings run 3 points behind year-on, prices slightly higher

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 09 March 2012 09 March 2012

Highlights from the 2012 outlook Carnival Corp & plc unveiled with its first quarter interim report:

* At this time, cumulative advance bookings, excluding Costa, for the

remainder of 2012 are approximately 3 occupancy points behind the prior

year with prices slightly higher than last year's levels (constant dollars)

* Net revenue yields for FY 2012 are expected to be in line with the prior

year (constant dollars) excluding Costa, and decline 2 to 4 percent

(constant dollars) including Costa

* Net cruise costs excluding fuel per ALBD for FY 2012 are expected to be in

line with the prior year on a constant dollar basis

* Changes in currency exchange rates and fuel prices for FY 2012 are expected

to reduce FY 2012 earnings by $0.59 per share compared to 2011

* Full year 2012 non-GAAP earnings per share (diluted) expected to be in the

range of $1.40 to $1.70, compared to $2.42 for 2011

* 2Q 2012 non-GAAP earnings per share (diluted) expected to be in the range

of $0.05 to $0.09, compared to $0.26 in 2Q 2011

Carnival Corp & plc says Costa Allegra incident cost $29 million; received $515 million for Costa Concordia

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 09 March 2012 09 March 2012

Key details from first quarter interim report of Carnival Corp & plc concerning the three months to 29 Fenruary period. Costa Concordia has been declared total loss and the company ha sreceived $515 million insurance recoverable.

* 1Q revenues increased by $163m to $3.6b from $3.4b in the prior year, due

primarily to increased capacity and higher ticket prices

* 1Q net revenue yields in constant dollars increased 2.9% (up 2.3% in

current dollars) compared to the prior year, which was higher than the

company's December guidance

* Excluding fuel, constant dollar net cruise costs per available lower berth

day ("ALBD") increased 6.4% and included a $34 million impairment charge

related to Costa Allegra and $29 million of Costa Concordia incident

expenses

* Fuel prices increased 30% to $707 per metric ton for 1Q 2012 versus $543

per metric ton in 1Q 2011

* An insurance recoverable of $515 million for Costa Concordia was recorded,