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Higher Fares Buoy Carnival's Profit

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The Associated Press

Published: September 21, 2007

MIAMI - Carnival Corp.'s third-quarter profit rose 12 percent as the world's largest cruise operator benefited from higher booking prices and new ships in North America and Europe, lifting shares as much as 5 percent.

Though the latest quarterly results beat Wall Street expectations, Carnival warned that its fourth-quarter results could come in lower than in the year-earlier period because of higher fuel costs. Nonetheless, it said full-year earnings could reach the higher end of its previous expectations.

The Miami-based company reported net income of $1.38 billion, or $1.67 cents per share, for the third quarter ended Aug. 31, versus $1.23 billion, or $1.49 per share, a year earlier.

Revenue rose to $4.3 billion from $3.9 billion in the same period last year.
Carnival shares closed up $1.23, or 2.6 percent, to $48.53, after reaching a high of $49.89 Thursday.

'Our North American brands enjoyed another strong European season, a solid Alaska season, and a modest year-over-year improvement in revenue yields in the Caribbean,' said Carnival Chairman and Chief Executive Officer Micky Arison, noting the recovery in the Caribbean has continued as demand for those cruises remains strong.
Carnival operates 84 ships, with 17 new ships scheduled to enter service by June 2011.

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