Four New Ships for Carnival Corporation

Carnival Corporation reached an agreement with Italian shipbuilder Fincantieri for the construction of four new cruise ships worth more than $2 billion, along with options for two additional vessels. The agreement calls for the construction of four new vessels (one each for Costa Crociere, Holland America Line, Carnival Cruise Lines, and Princess Cruises); the two additional vessel options are for Carnival Cruise Lines and Holland America Line. Including the four new vessels, Carnival Corporation’s capacity growth for 2008 and 2009 is now expected to be 8.2 percent and 6.4 percent, respectively. The company’s order book now includes 16 new ships, 13 of which are being constructed by Fincantieri. The company also forecasts that by the end of 2005 it will have recorded a 19% increase in the total number of guests this year.