Carnival Reports Profit Slide in Q1 2014, Outlook Gloomy

MarineLink.com
Tuesday, March 25, 2014
Image courtesy of Carnival Corp.

Cruise line group Carnival Corporation announced non-GAAP net income of $2 million, or $0.00 diluted EPS for the first quarter of 2014 compared to non-GAAP net income for the first quarter of 2013 of $67 million, or $0.08 diluted EPS.

Key metrics for the first quarter 2014 compared to first quarter 2013 and December guidance 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 1Q 2014. Gross revenue yields decreased 1.9 percent in current dollars.
  • Net cruise costs excluding fuel per ALBD increased 3.3 percent in constant dollars driven by higher advertising spend. Costs were better than December guidance, up 4.5 to 5.5 percent primarily due to the timing of certain expenses. Gross cruise costs including fuel per ALBD in current dollars were flat.
  • Fuel prices declined 3.4 percent to $654 per metric ton for 1Q 2014 from $677 per metric ton in 1Q 2013 but were higher than December guidance of $643 per metric ton.
  • Fuel consumption per ALBD decreased 4.8 percent in 1Q 2014 compared to the prior year.

The company states that it continues to expect 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). The company also continues to expect 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 $1.50 to $1.70, compared to 2013 non- GAAP diluted earnings of $1.58 per share.

Looking forward, Carnival Corporation & plc President and Chief Executive Officer Arnold Donald stated, “We are on the path toward improved financial performance. We are working hard to maintain the momentum with additional product
initiatives, continuous improvement in our already high guest satisfaction levels and greater utilization of our global scale.”

 

 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Bollinger to Build 6 More FRCs for the USCG

Bollinger Shipyards, Inc., Lockport, Louisiana, announced the award of six additional USCG Sentinel Class Fast Response Cutters (FRCs). The U. S. Coast Guard

Wärtsilä to Divest its Shares in Two-stroke JV

Wärtsilä to divest its shares in QMD two-stroke joint venture Wärtsilä announced that it will divest its shares in the Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co.

Hall Joins Bouchard Transportation

Retired Active Duty Coast Guard Commanding Officer Brian Hall has joined Bouchard Transportation Co., Inc., the nation’s largest independently-owned oceangoing petroleum barge company,

Cruise Ship Trends

Concordia Tow Update: Smooth Sailing

The Costa Concordia wreck removal team reported this morning at 10:30 a.m. that after 22 hours of navigation, the convoy was over 50 miles off Giglio Island with about 140 miles from Genoa Prà-Voltri.

Royal Caribbean Profit Jumps on Higher European Demand

Royal Caribbean Cruises Ltd, the world's second-largest cruise operator, reported a big jump in quarterly profit as demand for its European cruises rose and passengers spent more onboard.

Travel Aboard One of the World’s Largest Containerships

CMA CGM Group is now offering genuine cruises aboard its biggest vessels, the new 16,020 TEUs containerships, such as the CMA CGM MARCO POLO or the CMA CGM ALEXANDER VON HUMBOLDT.

Finance

Thome Is the First to Sign up to IMPA Act

Leading integrated ship management service provider Thome Ship Management has become the first ship management company to join IMPA ACT, the responsible supply chain management initiative,

Legislation Grants Funding for EU's EMSA

EU Council Adopts Regulation on EMSA Funding The European Union Council adopted a regulation yesterday to finance the actions of the European Maritime Safety

Wärtsilä to Divest its Shares in Two-stroke JV

Wärtsilä to divest its shares in QMD two-stroke joint venture Wärtsilä announced that it will divest its shares in the Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3486 sec (3 req/sec)