Carnival Sails to Profit
The world's largest cruise company Miami-based Carnival Corp reported a net profit of $49 million, or 6 cents per share in the first quarter ended Feb. 28.
That compared with a loss of $20 million, or 3 cents per share, in the 2014 quarter. Earnings, adjusted for non-recurring costs, were 20 cents per share.
The profit beats analysts’ estimates, spurred by lower fuel costs and higher passenger spending. The shares jumped the most since August 2011.
"The year is off to a strong start achieving significantly higher earnings than the prior year and our previous guidance," Carnival Corp. President and CEO Arnold Donald, said in an earnings statement.
Onboard revenue grew 4.6 percent from a year ago, which helped to drive the quarter's performance. Total revenue however slipped 1.5 percent to $3.5 billion from $3.6 billion in the prior year, which did not meet Wall Street forecasts.
Fuel costs in the quarter declined 39 percent to $318 million versus $523 million in the 2014 period.
Carnival has replaced managers and rebuilt its brand since the wreck of its Costa Concordia in 2012 and a fire aboard the Carnival Triumph a year later, events that discouraged some passengers from signing up for cruises.
On Thursday, the company ordered nine new vessels to join its 101-ship fleet starting in 2019. Carnival Corp.'s seven other cruise brands are Princess Cruises, Holland America Line, Seabourn, Cunard, AIDA Cruises, P&O Cruises (UK) and P&O Cruises (Australia).
