Carnival Corporation reported net income of $926.2 million, or $1.58 per share, on revenues of $4,535.8 million for its year ended Nov. 30, 2001, compared to net income of $965.4 million, or $1.61 per share, on revenues of $3,778.5 million for 2000.  

For the fourth quarter ended Nov. 30, 2001, Carnival reported net income of $116.3 million, or $0.20 per share, on revenues of $959.1 million, compared to net income of $193.8 million, or $0.33 per share, on revenues of $850.3 million for the fourth quarter of 2000.

Both the annual 2001 and fourth-quarter net income were reduced by so-called impairment charges, that is, write-downs in the carrying value of two ships. Carnival would only identify the Patriot, the former Nieuw Amsterdam, as one of two ships.

The company's fourth-quarter results were also adversely affected by the September 11 terrorist attacks, resulting in lower occupancies and lower prices during the 2001 fourth quarter.


Carnival Chairman Micky Arison said that booking levels have been recovering from what he called a significant slowdown in the two months following September 11. But by December 20, 2001, when Carnival released its earnings report, cumulative bookings for 2002 were still behind the previous year's levels at that time. Arison also said that 2002 pricing had improved but was also below the previous year's levels.

At the time, Carnival said that the booking occupancy level for its first quarter of fiscal 2002 was approximately 92 percent, which was approximately seven percentage points behind the level at the same time the previous year.

Howard Frank, vice chairman and CFO, added that net revenue yield was expected to be down in the range of 10 to 15 percentage points in Q1 02.

Bookings for the second and third quarter were also behind last year's levels, with occupancy down by approximately 11 percentage points each quarter. Pricing for Q2 and Q3 was also down from the prior year.

Passengers are booking much closer in, explained Frank. "People are not making long-term vacation plans. Thus, we expect bookings to pick up as we move closer in."

Arison indicated that given the booking trend, he was optimistic that net revenue yield comparisons for the balance of 2002 will improve compared to the first quarter. "We will get a much better forward picture once we are in January," he said.

But Arison also expressed caution. "We are still vulnerable to other acts that can set us back," he said. "I do not believe we have seen the last terrorist attack or the last move by (President) Bush or (Prime Minister) Blair. We must keep all this in mind as we plan."

Meanwhile, onboard pricing has not been raised to boost revenues, according to Arison, who cited anecdotal evidence that since some passengers paid les s for their tickets, they have spent more money onboard. Onboard spending typically represents 15 percent of total revenues.

Carnival expects to see annual capacity increases of 4.5 percent in 2002, 16.5 percent in 2003, 17.3 percent in 2004 and 10.6 percent in 2005.

The company has also changed the delivery schedules for Holland America Line's Vista­ class newbuilds, assigning one slot to Cunard Line and signing an option on a fifth newbuild. According to the new schedule, the Zuiderdam will be delivered in November 2002; the Oosterdam June 2003; Vista 3, April 2004; Vista 4, October 2005; and the option, May 2006.

The Cunard ship is scheduled for delivery in January 2005 and will target the U.K. market.

Carnival said it does not expect to reschedule any further deliveries.

Arison said that while it was not appropriate to talk beyond contracts already signed, he said he was bullish on the long term and the current contracts were not expected to be the last.