Carnival Report Better Than Expected Financial Results
Carnival Corporation & plc reports fourth quarter and full year earnings 2012.
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.
Key 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.