Carnival revises forecast on strong cruise demand

Although Carnival’s profits for the last quarter fell by three percent, it was a smaller decline than analysts had expected, attributed to lower operating costs and an insurance gain from 2005’s Hurricane Wilma.

The cruise operator’s net income dropped to $1.33 billion ($1.65 a share), as compared with a year earlier when the company posted profits of $1.38 billion ($1.67 a share), with higher fuel prices blamed for the 28 cents per share decline.

Revenue for the same period, ended August 31, was up by 11 percent to $4.81 billion, as compared with a year earlier, when the company $4.32 billion for the third fiscal quarter, as North American cruise lines were given a boost by a strong demand for cruises in the Caribbean.

Thomson Reuters reported that analyst forecasts were for $1.58 per share earnings on revenues of $4.84 billion.

The chairman and chief executive of Carnival, Micky Arison, stated that advance bookings for the remainder of this year and the first half of 2009 were down slightly from last year, although they were ahead of the previous year and ticket prices have increased.

On Friday, Carnival shares rose by 30 cents, or 0.8 percent, up to $39.23 per share.

www.carnival.com