Carnival's Profit Forecast Down

Posted by Eric Haun
Tuesday, June 24, 2014
Carnival Spirit (Photo courtesy of Carnival)

Carnival Corp, the world's largest cruise operator, forecast an adjusted profit below market estimates for the current quarter, blaming increased competition in the Caribbean.

Shares of the company, which operates the Carnival, Holland America and Costa cruise lines, fell as much as 3 percent.

"The North American brands are ahead on price but are still behind on occupancy as a result of the large increase in industry capacity in the Caribbean," Chief Financial Officer David Bernstein said on a conference call.

Carnival forecast an adjusted profit of $1.38-$1.44 per share for the third quarter ending August 31, when the company usually earns a lion's share of its earnings due to peaking demand in the summer.

Analysts on average were expecting $1.51 per share, according to Thomson Reuters I/B/E/S.

UBS analyst Robin Farley termed the forecast a "surprise" for a quarter that would have plenty of European and Alaskan cruises to offset weakness in the Caribbean business.

Carnival said the industry was offering more promotions to win passengers for cruises in the Caribbean region.

"Carnival Cruise Lines decided to hold price and give up the occupancy," Bernstein said.

Smaller rival Royal Caribbean Cruises Ltd said in April that it had strong bookings for the Caribbean but the environment remained "very promotional".

About 35 percent of Carnival's passenger capacity was in the Caribbean in the year ended November.

Industry analyst Stewart Chiron said Carnival and Royal Caribbean were pointing to Europe-based MSC Cruises that is offering 7-night cruises in the Caribbean for as low as $199.

Carnival said it expected third-quarter net revenue yields, which blend ticket sales and money spent onboard, to be flat to down 1 percent on a constant currency basis.

Net revenue yields are expected to be slightly up in the fourth quarter, the company said.

Carnival raised its full-year adjusted profit forecast to $1.60 to $1.75 per share from $1.50-$1.70.

Net income rose to $106 million, or 14 cents per share, in the second quarter ended May 31, from $41 million, or 5 cents per share, a year earlier.

Excluding items, the company earned 10 cents per share.

Revenue rose 4 percent to $3.63 billion.

Analysts on average had expected earnings of 2 cents per share on revenue of $3.61 billion.

Carnival's shares recouped some of their losses to be down 1 percent at $38.91 in afternoon trading on the New York Stock Exchange on Tuesday.

(By Sruthi Ramakrishnan; Editing by Don Sebastian and Sriraj Kalluvila)

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MOL’s Coal Carrier for Tokyo Electric Power

Mitsui O.S.K. Lines, Ltd. today announced that the coal carrier Hakutaka, which will serve Tokyo Electric Power Company, Inc. was delivered at Mizushima Shipyard

Swire Pacific Offshore Acquires 2 Newbuildings

Shipowner and operator, Swire Pacific Offshore Operations (Pte) Ltd (SPO) celebrated the naming of two new vessels, Pacific Centurion, an Anchor Handling Tug Supply (AHTS) vessel,

Helios LPG Pool to Start Operating

Dorian LPG Ltd. today announced the commencement of operations of Helios LPG Pool LLC on April 1st, 2015.  Helios LPG is jointly run by Dorian LPG and Phoenix Tankers Pte.

Cruise Ship Trends

Holland America Line Ships Score 100

On recent routine United States Public Health inspections (USPHI) conducted by the U.S. Centers for Disease Control and Prevention, Holland America Line’s ms Statendam,

Cruise Giant Carnival to Expand its Fleet

The world's largest cruise ship company Miami-based Carnival Corp. has signed agreements with German and Italian ship builders to build nine new ships over a four-year period, starting in 2019.

Carnival to Add Nine Ships to Cruise Fleet

Carnival Corporation enters into strategic partnerships to add nine cruise ships to its fleet over a four-year period starting in 2019; shipbuilders Fincantieri

Finance

Qatar Hikes Container Storage & Clearance Charges

Changes to sea port charges have been implemented in Qatar, as per the decision of the country's Council of Ministers.   20' containers (clear in approx. 3–7 days,

Yachting Malta PPP Sets Sail

Yatching Malta Ltd (YML) - a new public private partnership (PPP) between the government and the Royal Malta Yacht Club (RMYC) was formed with the aim of putting Malta on "the global yachting map".

China Cosco's Profit Up 54%

The Shanghai-and-Hong Kong-listed flagship unit of China Ocean Shipping Group, China Cosco Holdings Co Ltd says that its 2014 net profit went up 54 percent y/y at 362.

Passenger Vessels

Holland America Line Ships Score 100

On recent routine United States Public Health inspections (USPHI) conducted by the U.S. Centers for Disease Control and Prevention, Holland America Line’s ms Statendam,

Cruise Giant Carnival to Expand its Fleet

The world's largest cruise ship company Miami-based Carnival Corp. has signed agreements with German and Italian ship builders to build nine new ships over a four-year period, starting in 2019.

Carnival to Add Nine Ships to Cruise Fleet

Carnival Corporation enters into strategic partnerships to add nine cruise ships to its fleet over a four-year period starting in 2019; shipbuilders Fincantieri

News

MOL’s Coal Carrier for Tokyo Electric Power

Mitsui O.S.K. Lines, Ltd. today announced that the coal carrier Hakutaka, which will serve Tokyo Electric Power Company, Inc. was delivered at Mizushima Shipyard

Swire Pacific Offshore Acquires 2 Newbuildings

Shipowner and operator, Swire Pacific Offshore Operations (Pte) Ltd (SPO) celebrated the naming of two new vessels, Pacific Centurion, an Anchor Handling Tug Supply (AHTS) vessel,

Helios LPG Pool to Start Operating

Dorian LPG Ltd. today announced the commencement of operations of Helios LPG Pool LLC on April 1st, 2015.  Helios LPG is jointly run by Dorian LPG and Phoenix Tankers Pte.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
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: 0.2085 sec (5 req/sec)