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Carnival final quarter and full financial year profit falls as forecast

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 21 December 2012 21 December 2012

Carnival Corporation & plc, the world's largest cruise shipping group, has announced non-GAAP net income of $98 million, or $0.13 diluted EPS, for the fourth quarter of 2012. Reported U.S. GAAP net income, which included net unrealized losses on fuel derivatives of $5 million, was $93 million, or $0.12 diluted EPS. Net income for the fourth quarter of 2011 was $217 million, or $0.28 diluted EPS. Revenues for the fourth quarter of 2012 were $3.6 billion compared to $3.7 billion for the prior year.

Non-GAAP net income for the full year 2012 was $1.5 billion, or $1.88 diluted EPS, compared to net income of $1.9 billion, or $2.42 diluted EPS, for the prior year. Full year 2012 U.S. GAAP net income was $1.3 billion, or $1.67 diluted EPS, which included the non-cash write down for Ibero Cruises’ goodwill and trademark assets of $173 million. Revenues for the full year 2012 were $15.4 billion compared to $15.8 billion for the prior year.

Carnival Corporation & plc Chairman and CEO Micky Arison noted that fourth quarter earnings on a non-GAAP basis were better than anticipated in the company’s September guidance. Stronger than expected revenue yields combined with lower than expected fuel costs more than offset higher than anticipated operating costs.

Commenting on full year 2012, Arison stated, “As a result of the Costa Concordia tragedy in January, the past year has been the most challenging in our company’s history. However, through the significant efforts of our brand management teams, we were able to maintain full year 2012 net revenue yields (excluding Costa) in line with the prior year. In addition, we drove down net cruise costs, excluding fuel, slightly and fuel consumption by four percent.” Arison added that unfavorable changes in fuel prices and currency exchange rates reduced earnings by $300 million, or $0.39 per share, compared to the prior year.

Arison noted, “Cash from operations of $3.0 billion was more than sufficient to fund $1.8 billion in net capital investments and positioned the company with excess free cash flow to return to shareholders. Our regular quarterly dividend of $0.25 per share, combined with our recently announced special year-end dividend of $0.50 per share, will result in $1.2 billion of dividend distributions to our shareholders. Additionally, since the start of the fiscal year we purchased 3.5 million of the company’s shares in the open market at a cost of $120 million.”

FOR IMMEDIATE RELEASEKey metrics for the fourth quarter 2012 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 4.5 percent for 4Q 2012, which was better than the company’s September guidance, down 5 to 6 percent. Gross revenue yields decreased 5.7 percent in

current dollars. Net cruise costs excluding fuel per ALBD decreased 0.9 percent in constant dollars, less

than the September guidance, down 2 to 3 percent. Gross cruise costs including fuel per

ALBD in current dollars decreased 2.5 percent. Fuel prices increased 5.4 percent to $716 per metric ton for 4Q 2012 from $680 per

metric ton in 4Q 2011 and were better than the September guidance of $739 per metric ton.

During the fourth quarter, the company also announced it had reached an agreement for the construction of two new cruise ships – a 2,660-passenger ship for its Holland America Line brand to be delivered in 2015 and a 4,000-passenger vessel for its Carnival Cruise Lines brand to be delivered in 2016. Both are the largest ships ever built for those brands.

Yle: STX Finland receives €44 million from the government

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 21 December 2012 21 December 2012

The Finnish government has agreed to grant €44 million in innovation support funding to the STX Finland shipyard for its ship building operations. About €28 million will be channeled into securing an order for the construction of a new Oasis class ship, Yle reports in its website.

Carnival Corp & plc to report final quarter and full year results 20 December

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 19 December 2012 19 December 2012

Carnival Corp & plc, the world’s largest cruise shipping group, will report its fourth quarter and full financial year to 30 November results on 20 December.

Analysts in New York and London expect the full year earnings per share to amount to $1.87 compared to $2.42 in the previous financial year. The estimates range from $1.83 to $1.97.

For the final quarter the average forecast stands at $0.11 compared to 0.28 year on. These estimates range from a low of $0.08 to a high of $0.26.

 

Cruise industry forms global trade association

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 17 December 2012 17 December 2012

Nine cruise industry associations today announced they have agreed to operate under a common organisation with a unified structure to serve as the voice and advocacy leader of the global cruise industry.

The Passenger Shipping Association (PSA) and the Association of Cruise Experts (ACE) are among the nine cruise associations and will be known as CLIA UK, retaining their existing office in London. The other associations are Cruise Lines International Association in America, European Cruise Council, Asia Cruise Association, France’s AFCC, Brazil’s ABREMAR, Northwest and Canada Cruise Association, Alaska Cruise Association and International Cruise Council Australasia.

The new association was created to provide increased benefits and a globally unified voice for cruise lines, travel agents and business partners – all of whom contribute to an industry that creates nearly $100 billion in economic impact and more than 753,000 jobs worldwide.  For cruise lines, the new association offers a one-stop global resource on technical and regulatory issues and unified global communication and event coordination, all of which better utilise cruise lines’ investment in association membership.

For travel agents, the new association offers more robust partnership programmes and networking on a broader scale.  For the PSA’s associate members, it provides greater opportunities for customer and business partner development.
CLIA will be governed by a Global Executive Committee, chaired by Howard Frank, Vice Chairman, Chief Operating Officer and Member of the Executive Committee of Carnival Corporation & plc.  Christine Duffy, President and CEO of Cruise Lines International Association, will serve as the President and CEO of the new association, leading a team with responsibilities for international technical and regulatory issues, research, communications, industry relations and public affairs.

"We are now truly one industry with one voice," said Howard Frank. "Given the tremendous growth and continuing globalization of the cruise industry, this evolution addresses the need to speak and act globally with a unified voice while recognizing the importance of local relationships.  The new association will play a vital role in proactively shaping the policy and regulatory environments on a global level and promoting cruising with various constituencies through more effective coordination, communication and stakeholder engagement.”

PSA Director Bill Gibbons said “We have seen tremendous growth and success in the cruise industry since the PSA was formed in 1958 with the objective of promoting passenger travel by sea.  Cruising now touches every continent and having  one unified global organisation will be the natural next step in our development to ensure the industry is represented in a cohesive manner, as it continues to grow both in the UK and worldwide. We shall further develop our award winning travel agent training programme under CLIA UK and continue with our cruise consumer promotional activities.”

He continued: "Our ferry members are in discussion with the Chamber of Shipping with whom we have worked very closely over the last few years. The Chamber already has many ferry companies as members and offers depth and a strong track record on policy, technical and regulatory issues.  Ferry companies are also keen to continue the successful proactive work which has been undertaken by the PSA to raise the profile of ferry travel through the Discover Ferries campaign."

PSA Chairman, and Passenger Services Director for P&O Ferries, Simon Johnson, added: "This is clearly the right move for our cruise line members as the industry becomes truly global and I’m delighted that our ferry members look set to have a new home within the Chamber of Shipping where their interests will be safeguarded."
 
Christine Duffy, who will serve as President and CEO of the new association said: "There are immediate and longer term benefits from the new association that are extensive and wide ranging. It enables us to better leverage our members’ and partners’ investment in association membership while strengthening the industry’s leadership globally on issues such as safety, security, the environment, sustainability and health.  It also allows us to consolidate industry research and to leverage promotional events and marketing communication to facilitate greater consumer interest in cruising."

The CLIA global organisation will represent the cruise industry at the International Maritime Organisation based in London, the International Labour Organisation in Geneva and with other international maritime and shipping organisations around the world.  They will focus on global strategy, international industry issues and strategic communications.  Local and regional matters will continue to be managed by the national and regional associations in North America, Europe, and Australasia. The new association’s employees will be located across the globe.  Regional and country offices along with new staff appointments will be the subject of a future announcement.