Top Headlines

European cruise market grew 1.3%, industry economic contribution by 3.1% in 2012

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 26 June 2013 26 June 2013

The European source market for cruises grew by 1.3% last year to a record 6.2 million passengers, the Cruise Lines International Association (CLIA) said.

The industry contributed almost €38 billion to Europe's economy last year, an increase of 3.1% on 2011 and the number of employees has also risen from 326,000 in 2012 compared to 315,500 the previous year.

After three consecutive years of decline, 2012 produced a revival for shipbuilding: the global orderbook comprised 20 ships with an overall capacity to handle 60,000 passengers and a total value worth €10.5 billion due for delivery 2013-2016 at the end of last year.

Carnival shares rise after interims, top brass annoucement

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

Shares in Carnival Corporation and Carnival plc rose in New York and London respectively after the world’s largest cruise shipping group had reported a $72 million second quarter net profit and separation of the tasks of chairman and group CEO. At 1520 local time, the Carnival plc stock traded 3.49% higher at £22.52 in London. In New York, Carnival Corporation advanced 2.11% to $33.55.

Carnival says bookings for rest of year behind year-on levels and prices

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

Carnival Corp & plc, the world’s largest cruise shipping group, says at this time, cumulative advance bookings for the remainder of 2013 are behind the prior year at prices below the prior year levels. Since the end of March, fleetwide booking volumes for the next three quarters, excluding Carnival Cruise Lines, are running higher than the prior year at higher prices.

Booking volumes for Carnival Cruise Lines during the same period are running behind the prior year at lower prices.

Chairman and CEO Micky Arison noted, “Our 90,000 global team members are dedicated to delivering an outstanding vacation experience to 10 million guests each year. The level of quality, variety and innovation available throughout our fleet has never been greater and our guests are reaping the benefits of truly exceptional vacation values. We are working to more broadly communicate that message through stepped up consumer and trade marketing efforts, as well as strengthened engagement of our travel agent partners. We believe these initiatives, combined with slower supply growth, will lead to increased yields.”

Arison also stated, “In addition, we remain focused on reducing our fuel dependence. By year end, we will achieve a 23% cumulative reduction in fuel consumption since 2005 and expect our research and development efforts in fuel saving technologies to continue to bear fruit. We have strengthened our management teams in maritime and technical ship operations and product delivery, as well as marketing and communications. We expect the combination of these efforts will drive improved return on invested capital over time.”

The company expects full year net revenue yields, on a constant and current dollar basis to be down 2% to 3% compared to the prior year, in line with the May guidance. The company also expects full year net cruise costs excluding fuel per ALBD to be higher by 3.5 to 4.5 percent compared to the prior year on a constant and current dollar basis.

Taking the above factors into consideration, the company forecasts full year 2013 non-GAAP diluted earnings per share to be in the range of $1.45 to $1.65, compared to 2012 non-GAAP diluted earnings of $1.88 per share.

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.