Carnival Corp. Swings To Q4 Profit, Full Year Earnings Up 40%
costs and higher ticket prices have led Carnival
Corporation to a 40%
increase in full year earnings, beating the expectations of analysts.
The cruise giant announced adjusted
net income for the full year 2015 of USD 2.1
billion, compared to $1.5 billion for the prior year.
Revenues for the full year
2015 were $15.7 billion compared to $15.9 billion for the prior year, a
statistic Carnival attributed to a negative impact from currency exchange rates
of over $800 million. The strong USD has been a
challenge for Carnival as it makes ticket prices more expensive for foreign
the 4th quarter of the year, Carnival enjoyed fuel prices that were
46% lower than a year earlier, a steeper than projected decline. At the same
time, the company raised ticket prices.
have begun to sell at higher prices than the same time last year, particularly
close to departure,” said Chief Executive Arnold Donald.
for the 1st 3 quarters of 2016 are ahead of the prior year at
slightly higher prices, the company said.
was particularly encouraging for Carnival. The company reported a profit of
$270 million, up from a loss of $104 million in the year-before period. Revenue
slipped 0.2% to $3.71 billion.
“We nearly doubled our 4th quarter results
and ended the year with 40% higher earnings. This year we achieved a 4.3%
improvement in revenue yields compared to the prior year due to higher onboard
revenues and increased ticket prices as we have driven demand in excess of
capacity growth, while our ongoing efforts to leverage our industry-leading
scale helped to contain costs.”
Looking forward, Donald stated, “We have accelerated
progress toward and remain well positioned to achieve our double digit return
on invested capital threshold in the next 2 to 3 years.”