Carnival Posts Increased Earnings on Lower Revenues

Carnival Corporation has reported net income of $260 million, or $0.33 per share, on revenues of $2.9 billion for its first quarter ended Feb. 28, 2009, compared to net income of $236 million, or $0.30 per share, on revenues of $3.2 billion the year before.

Carnival attributed lower revenues to lower cruise ticket prices and onboard spending in addition to unfavorable exchange rates, offset by the drop in fuel prices from the prior year levels. Cost controls played a meaningful role in achieving increased earnings, according to a prepared statement.

The increase in earnings was also driven by a $15 million gain from the unwinding of a lease and lease-back transaction and a $22 million income tax benefit.

Booking volumes for the remaining three quarters are running 10 percent ahead of last year but at significantly lower prices, according to Carnival. Full year earnings are expected to be in the range of $2.10 to $2.30 compared to $2.90 for the prior year. The forecast for the second quarter is in the range from $0.30 to $0.32 per share versus $0.49 for the second quarter last year.

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