Carnival Corp. Reports $1.3 Billion in Third Quarter Profits

Carnival Corp. reported net income of $1.3 billion, or $1.65 earnings per share, on revenues of $4.8 billion for its third quarter ended Aug. 31. That compares to net income of $1.4 billion, or $1.67 diluted earnings per share, on revenues of $4.3 billion for the same period last year.

Carnival Corp. Chairman and CEO Micky Arison said third-quarter results were better than the previous guidance provided in June. This was due primarily to lower than expected cruise costs, including an insurance recovery of 2 cents per share.

Carnival’s European brands benefited from a 24 percent capacity increase, although local currency yields were lower against strong comparisons from the prior year. Higher fuel prices, however, cost the company $230 million, or 28 cents per share for the third quarter compared to the same quarter a year ago.

Net revenue yield (revenue per available lower berth day) for third-quarter 2008 increased 4.1 percent (1.3 percent on a constant dollar basis). Gross revenue yields increased 3.4 percent. Fuel price increased 77 percent to $666 per metric ton from $376 per metric ton in the third quarter of 2007.

For the remainder of 2008 and the first half of 2009, occupancy levels for advance bookings are running slightly behind the prior year, with ticket prices for these bookings at higher levels.