Carnival Corporation, the international cruise operator, has reported a major downturn in profits for the second quarter of 2012.
The company posted net profits of US$159 million for the three-month period – 22.8% lower than the US$206m achieved in Q2 2011. Revenues slipped 2.8% to US$3.5bn.
The company’s Chairman & CEO Micky Arison said however, that the earnings were better than expected.
“Cruise ticket prices, excluding Costa, held firm… which, combined with stronger than expected onboard revenues, drove yields above prior year levels. Our North American brands performed well, achieving a 3% revenue yield improvement compared to the prior year, which more than offset slightly lower yields for our Europe, Australia and Asia brands, excluding Costa. In addition, continued focus on cost controls and fuel consumption helped to mitigate the impact of higher fuel prices in the quarter,” he said.
Carnival also raised its profit forecast for full-year 2012 to US$1.80-1.90 per share, compared to the March guidance of US$1.40-1.70.
“The long term fundamentals of our business remain sound. As we look toward the future, we are excited by the prospect for continued global expansion beyond our established markets in North America and Western Europe. We are pursuing multiple opportunities to develop emerging cruise markets including positioning a second Costa ship in China and through a series of Princess cruises dedicated to the Japanese market in 2013,” Arison added.
