Carnival Corp Reports Strongest Earnings
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income of $1.4 billion, or $1.93 diluted EPS, for the third quarter of 2016 compared to U.S. GAAP net income for the third quarter of 2015 of $1.2 billion, or $1.56 diluted EPS. Third quarter 2016 adjusted net income of $1.4 billion, or $1.92 adjusted EPS, was higher than adjusted net income of $1.4 billion, or $1.75 adjusted EPS, for the third quarter of 2015.
Adjusted net income excludes unrealized gains and losses on fuel derivatives and other net charges, totaling $7 million in gains for the third quarter 2016 and $149 million of losses for the third quarter 2015. Revenues for the third quarter of 2016 were $5.1 billion, $0.2 billion higher than the $4.9 billion in the prior year.
Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted, "We delivered the strongest quarterly earnings in our company's history affirming our ongoing efforts to expand consumer demand in excess of measured capacity increases and leverage our industry leading scale. Revenues during the peak summer season were bolstered by strong performances from both our North American and European brands and across all major deployments including the Caribbean, Alaska and Europe," Donald added.
Key metrics for the third quarter 2016 compared to the prior year were as follows:
Gross revenue yields (revenue per available lower berth day or "ALBD") increased 0.6 percent. Net revenue yields on a constant currency basis increased 2.7 percent for 3Q 2016, toward the top end of the June guidance range of up 2 to 3 percent.
Gross cruise costs including fuel per ALBD decreased 0.2 percent. Net cruise costs excluding fuel per ALBD on a constant currency basis increased 5.5 percent, better than June guidance of up 6 to 7 percent, due to the timing of certain expenses.
Changes in fuel prices (including realized fuel derivatives) and changes in currency exchange rates increased earnings by $0.02 per share.
Highlights during the third quarter included the grand opening of the Arison Maritime Center in Almere, Netherlands, named for Carnival Corporation & plc Chairman Micky Arison and his father, the late Ted Arison, who founded the company. The 110,000-square-foot purpose built facility is a major expansion from the existing training center that opened in 2009. The center will provide comprehensive safety and skills training for bridge and engineering officers. The facility includes four bridge and engine room simulators and is expected to train over 6,500 officers annually across the company's 10 brands.