Fuel Contract LOSSES Cause Carnival Earnings to DROP in Q2
Carnival Corp & Plc (NYSE:CCL), the world’s largest cruise operator, reported much smaller net income for the second quarter, as sales of cruise passenger tickets fell almost 4 percent and losses of $145 million were incurred on fuel derivatives.
The company earned $14 million (2 cents a share) compared with $206 million (26 cents a share) in the previous period. Revenues for the quarter were $3.54 billion, down from $3.62 billion a year ago.
The results included a receipt of $17 million towards insurance proceeds which were in excess of the book value of a ship that was a total loss. Another $17 million was received from a litigation settlement. But for these amounts, the company would have reported a loss.
The outlook for the full year 2012 has been raised to $1.80 to $1.90 a share compared to the previous (March) guidance of $1.40 to $1.70 a share, based on rising bookings witnessed since March. Chairman and CEO Micky Arison commented, “The increase in booking volumes indicates that a progressive recovery is well underway and we are catching up following the slowdown in bookings during wave season, our peak booking period. The attractive pricing we have in the marketplace is clearly stimulating demand, especially for the Costa brand. We are pleased to see the resurgence in consumer demand for Costa, which is a testament to the brand’s long-standing reputation for quality built over many decades.”
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