Carnival 4Q net income rise as revenue improves
MIAMI, USA
Carnival Corp’s fourth-quarter net income climbed 29 per cent, the company reported Tuesday, with revenue improving as an economic recovery allowed cruise operators to demand higher prices.
People are again feeling safe enough to plunk down thousands to travel at sea with the recession’s harshest effects beginning to fade for many.
“All-in-all, 2010 was an encouraging year with improved business trends from a gradually recovering economy,” Carnival Chairman and CEO Micky Arison said.
The cruise operator earned US$248 million, or 31 cents per share during the quarter, compared with US$193 million, or 24 cents per share, a year ago.
The results met the expectations of analysts polled by Thomson Reuters. Analysts’ estimates normally omit one-time items.
Carnival’s stock gained US$1.68, or 3.9 per cent, to US$44.93 cents in Tuesday morning trading after reacing a 52-week high of US$45.26.
The Miami company cautioned last month that a fire that left the Carnival Splendor adrift off Mexico’s coast for three days would lower its earnings by 7 cents per share.
Revenue for the period ended Nov. 30 rose 7 per cent to US$3.5 billion from US$3.28 billion, topping Wall Street’s US$3.36 billion.
For the year, Carnival’s net income increased 11 per cent to US$1.98 billion, or US$2.47 per share, compared with US$1.79 billion, or US$2.24 per share, in the previous year.
Annual revenue rose eight per cent to US$14.47 billion from US$13.46 billion.
Carnival, whose brands include Princess Cruises, Holland America Line and Carnival Cruise Lines, predicts 2011 earnings in a range of US$2.90 to US$3.10 per share.
The company said its cumulative advance bookings for next year are at higher prices, with slightly lower occupancies than a year earlier.
Carnival expects its first-quarter earnings between 15 and 19 cents per share.
Analysts anticipate 2011 net income of US$3.44 per share and first-quarter earnings of 24 cents per share.
Carnival operates 98 ships, with 10 new vessels set to be delivered between March 2011 and May 2014.
AP
Photo: Earns Carnival
In this June 8, 2010 photo, tourists swim near George Town, Grand Cayman, as the Carnival Valor cruise liner, foreground, and a Celebrity liner sit off-shore. Carnival Corp’s fourth-quarter net income climbed 29 percent as revenue improved as an economic recovery allowed cruise operators to demand higher prices.(Photo: AP)
