Top Headlines

MSC Cruises launches two-year refit program for its Lirica class

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 20 December 2013 20 December 2013

MSC Cruises today announced a multi-million dollar program that will involve all four of its Lirica class ships over the next two years.

The $273 million "renaissance" has been commissioned from Fincantieri in Italy, one of the world’s leading shipbuilding companies, and will be completed by 2015. The upgrades of MSC Armonia, MSC Lirica, MSC Sinfonia and MSC Opera will add exciting new entertainment options, technological advancements, expanded shopping options and up to nearly 200 new cabins per ship.

The ships will boast a completely new splash park, with an exhilarating pathway of water features and water cannons. The impressive onboard boutiques will be enhanced with new interiors, more space and an all-new perfumery with display corners dedicated to leading brands, such as Dior, Lancôme and Dolce & Gabbana.

"When our four Lirica class ships return to the seas after a total of 38 weeks in dry dock, they will be entirely new ships with additional amenities and comfort for our travelers, allowing them to reach sophisticated and refined destinations around the world," said MSC Cruises’ Chief Executive Officer, Gianni Onorato, during a press conference in Rome. "The extensive renovations represent a huge investment, and reaffirms, once again, our company’s dedication to high standards, cutting-edge technology and continuous product innovation. MSC Cruises’ ships are works of art in their own right. With these exciting upgrades to our fleet - already renowned for its unrivalled style and elegance – we will be even more competitive."

Giuseppe Bono, Chief Executive Officer of Fincantieri, commented: "The winning of this contract is a source of great satisfaction to us in many respects. Above all, it involves us with an important partner like MSC Cruises in a program that is highly ambitious both technically and operationally. It also allows us to strengthen our position in the refitting and refurbishment segments and confirms our position as one of the leading players in this sector."

The line of credit is entirely guaranteed by SACE, Italy’s export credit agency and insurance and financial group. "We are pleased to once again confirm our commitment alongside Fincantieri. This is a further recognition of the high quality of our shipbuilding industry and a sign of renewed optimism for the future of such an important industrial sector” said Alessandro Castellano, Chief Executive Officer of SACE. We are very proud to contribute to the financing of this plan announced by MSC Cruises, knowing that the real winners will be the thousands of workers at Fincantieri and its SME supplier base."

Schedule and key figures

The MSC Lirica class “renaissance program” will follow the dry dock schedule below:

·        MSC Armonia: August 31 to November 17, 2014

·        MSC Sinfonia: 12 January 12 to March 16, 2015

·        MSC Opera: May 2 to July 4 2015

·        MSC Lirica: August 21 to November 9 2015

The four Lirica class ships were built between 2003 and 2005 at the STX yards in Saint-Nazaire, France. They are currently 251 meters long, weigh 60,000 tons and carry 2,069 travelers. After the renovations, the ships will be 275 meters long, weigh 65,000 tons and carry 2,680 travelers, boasting 193 additional cabins (plus 59 new cabins for crew members).

Carnival group cumulative advance bookings behind vs. year-on; catching up on volumes, sees 2014 net yield fall

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 December 2013 20 December 2013

Carnival Corporation & plc says at this time, cumulative advance bookings for 2014 are behind the prior year at prices in line with prior year levels. Since September, booking volumes for the first three quarters of 2014 are running well ahead of last year’s levels at lower prices.

President and CEO Arnold Donald noted: “We are catching up on booking volumes and gaining momentum as we enter 2014. We believe the compelling value we have in the marketplace will continue to stimulate strong demand leading to a solid wave period. We continue to expect revenue yields to turn positive in the second half of 2014 compared to the prior year.”

Based on current booking trends, the company forecasts full year 2014 net revenue yields, on a constant dollar basis, to be down slightly compared to the prior year (in line with the prior year on a current dollar basis). First quarter revenue yields (constant dollars) are expected to decline 3 to 4 percent compared to the prior year and improve during the remainder of 2014 based on a recovery in ticket prices.

The company expects net cruise costs excluding fuel per ALBD for full year 2014 to be slightly higher than the prior year on a constant dollar basis. Taking the above factors into consideration, the company forecasts full year 2014 non-GAAP diluted earnings per share to be in the range of $1.40 to $1.80, compared to 2013 non-GAAP diluted earnings of $1.58 per share.

Looking forward, Donald stated: “With over 100 ships and more than 10 million guests we have a scale advantage that cannot be replicated in this industry. We are aggressively seeking opportunities to leverage that scale to drive top line improvement and gain cost efficiencies. To support that effort, we have realigned our leadership team and processes to achieve greater collaboration and cooperation.”

“We have heightened our focus on the guest experience and further exceeding guest expectations. As 2014 progresses, we will commence a number of strategic initiatives designed to fuel our earnings power, drive cash flow and improve return on invested capital over time.”

First quarter constant dollar net revenue yields are expected to decrease 3 to 4 percent compared to the prior year. Net cruise costs excluding fuel per ALBD for the first quarter are expected to be 4.5 to 5.5 percent higher on a constant dollar basis compared to the prior year mostly due to higher advertising costs.

Based on the above factors, the company expects non-GAAP diluted losses for the first quarter 2014 to be in the range of $(0.07) to $(0.11) per share versus 2013 non-GAAP earnings of $0.09 per share.

Asia expansion, fuel consumption reduction and rebuilding Carnival Cruise Lines brand focal in 2013

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 December 2013 20 December 2013

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald said the group realised major milestones in the emerging Asian cruise region this year by doubling its presence in China, as well as launching its first season of cruises originating from Japan. In addition, the company opened ten sales offices throughout Asia to support its continued expansion plans in this important emerging market.

Additionally, the company increased efficiency fleet wide, achieving an additional five percent reduction in fuel consumption per unit this year, bringing the cumulative reduction to 23 percent since 2005. The company also furthered its environmental efforts through the successful testing of new “scrubber” technology and plans to install exhaust-gas cleaning scrubbers throughout the fleet. Over the next few years, the company will further refine both the scrubber design and installation process. In addition to exceeding stricter air emission standards, this technology will help mitigate higher fuel costs.

Donald further commented that the company’s flagship brand Carnival Cruise Lines also undertook a number of strategic initiatives. The brand implemented a major travel agent outreach program, Carnival Conversations, a series of roadshows reaching thousands of agents across the country to better align with travel partners. In addition, the brand launched a new advertising campaign “Moments That Matter,” featuring the memorable vacation moments experienced every day by millions of guests as captured through their own images. The “Great Vacation Guarantee,” a one-of-a-kind hassle free vacation guarantee was also introduced.

Carnival Corporation & plc final quarter and full year net profit fall

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 December 2013 20 December 2013

Carnival Corporation & plc has reported fourth quarter GAAP net income, which included net unrealized gains on fuel derivatives of $31 million, of $66 million, or $0.08 diluted EPS. For the fourth quarter of 2012, U.S. GAAP net income was $93 million, or $0.12 diluted EPS. Revenues for the fourth quarter of 2013 were $3.7 billion compared to $3.6 billion for the prior year. The company’s financial year ends on 30 November.

Full financial year 2013 GAAP net income was $1.1 billion, or $1.39 diluted EPS compared to $1.3 billion, or $1.67 per share for the prior year. Revenues for the full year 2013 were $15.5 billion compared to $15.4 billion for the prior year.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted that fourth quarter earnings on a non-GAAP basis were better than anticipated in the company’s September guidance due primarily to better than expected cruise ticket prices and onboard spending for Carnival Cruise Lines. Donald added, “Accelerated progress in Carnival Cruise Lines’ brand recovery had a positive impact on fourth quarter results. A steady stream of innovative product initiatives, the launch of a nationwide marketing campaign and travel agent outreach program, as well as an industry-leading vacation guarantee fueled the brand’s improvement.”

Key metrics for the fourth 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 2.1 percent for 4Q 2013, which was better than the company’s September guidance, down 3.0 to 4.0 percent. Gross revenue yields decreased 0.9 percent in current dollars.

• Net cruise costs excluding fuel per ALBD increased 6.5 percent in constant dollars, driven by higher advertising spend. Costs were higher than September guidance, up 3.5 to 4.5 percent due primarily to the timing of expenses. Gross cruise costs including fuel per ALBD in current dollars increased 1.6 percent.

• Fuel prices declined 6.3 percent to $671 per metric ton for 4Q 2013 from $716 per metric ton in 4Q 2012 and were better than the September guidance of $687 per metric ton.

American Cruise Lines building four new ships

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 16 December 2013 16 December 2013

American Cruise Lines – the largest U.S. cruise company – today announced that it is building four new riverboats for American river cruising. Construction has already begun on the first two ships, with the first to begin cruising in in the spring of 2015. The first two new riverboats will carry between 150 and 200 guests and will cruise the Mississippi River system and the Columbia and Snake Rivers. The four new ships will enter service between 2015 and 2017. They will bring all the latest amenities and comforts to each area cruised, including the largest staterooms, private balconies, and spacious dining and lounge venues.

At least one of the four new ships will operate cruises along the Columbia and Snake Rivers from the Pacific Coast to the Idaho border, more than 500 miles inland. It will be specially built for cruising in the Pacific Northwest with historic accents and modern conveniences. Every stateroom is designed to have panoramic views, private balconies, and room service. The art collection is being carefully selected to highlight the Lewis and Clark expedition and the Native American tribes who helped them. During the cruise, guests will learn about the Lewis and Clark expedition while enjoying the comforts of the finest ship to ever sail this region. The itinerary will be similar to American Cruise Lines’ existing itinerary on the Columbia and Snake Rivers aboard Queen of the West, which underwent extensive renovation in 2010.

In 2012, American Cruise Lines revolutionized Mississippi River cruising by bringing an unprecedented level of refinement and service to the river through its introduction of Queen of the Mississippi, the first new ship on the river in nearly twenty years. The additional new ships will have many of the same features and carry approximately 150 to 200 guests. They will have the largest staterooms ever with sliding glass doors for panoramic views, room service, and other amenities unique to American Cruise Lines.

“There is a longstanding history of riverboating in America,” said Timothy Beebe, Vice President of American Cruise Lines. “Since the 1800s, each new riverboat has sought to outdo the last by offering more amenities, comforts, and service than its predecessors. The Columbia and Snake Rivers have not seen a new riverboat in over ten years, so the upgrade is overdue, and the new ship on the Mississippi River will complement the Queen of the Mississippi beautifully.”

The announcement comes on the heels of a recent American Cruise Lines press release which revealed the company has experienced annual growth of more than 25% in each of the past three years. The company is the leader in US river cruising and has an ambitious growth plan to provide its superior service to more people each year.