Carnival Corp Record Earnings!

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Carnival Corporation & plc Reports Record Fourth Quarter and Full Year
Earnings

Full Year Net Income Reaches $2.3 Billion; Revenues Exceed $11 Billion

MIAMI, Dec. 16
Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) reported record
net income of $353 million, or $0.43 diluted EPS, on revenues of $2.6
billion for its fourth quarter ended November 30, 2005. Net income for
the fourth quarter of 2004 was $294 million, or $0.36 diluted EPS, on
revenues of $2.2 billion.

Net income for the year ended November 30, 2005 was $2.3 billion, or
$2.70 diluted EPS, on revenues of $11.1 billion, compared to net
income of $1.9 billion, or $2.24 diluted EPS, on revenues of $9.7
billion for the same period in 2004.

Fourth quarter revenues increased by 14.4 percent driven by both a 9.1
percent increase in cruise capacity and a significant increase in
cruise revenue yields (revenue per available lower berth day),
partially offset by a stronger U.S. dollar relative to the euro and
sterling. Net revenue yields for the fourth quarter of 2005 increased
5.9 percent compared to the prior year. Net revenue yields as measured
on a local currency basis ("constant dollar basis") increased 6.8
percent over the same period last year, primarily due to higher cruise
ticket prices and onboard revenues. Gross revenue yields increased 4.5
percent.

For the 2005 year, net revenue yields increased 6.5 percent (6.1
percent on a constant dollar basis). Gross revenue yields increased
4.9 percent.

Net cruise costs per available lower berth day ("ALBD") for the fourth
quarter of 2005 were up 3.8 percent compared to costs for the same
period last year. On a constant dollar basis, net cruise costs per
ALBD increased 4.9 percent from the same period last year primarily
due to an approximate 50 percent increase in fuel prices. Excluding
higher fuel costs, the company's 2005 fourth quarter net cruise costs
per ALBD were approximately equal to the same period last year on a
constant dollar basis. Gross cruise costs per ALBD increased 2.5
percent compared to the prior year.

Carnival Corporation & plc Chairman and CEO Micky Arison said that he
was pleased with the company's performance during the period. "It is a
testament to the resilience of our cruise business that despite an
approximate 50 percent increase in fuel costs for the quarter and the
worst hurricane season in our history, we were still able to grow
earnings by 20 percent to achieve record fourth quarter results,"
Arison said.

For the full year, Arison said that increased pricing and a continued
sharp focus on cost controls more than offset a $180 million
year-over-year rise in fuel costs. He further stated, "All facets of
our business, from contemporary to luxury, performed well overall
during the past year, with guests booking in record numbers."

2006 Outlook

Looking forward to 2006, Arison said, "We expect continued revenue
yield growth in 2006 although probably not at the levels experienced
during the last two years. As it stands today, advance booking levels
for 2006 are ahead of the prior year on a capacity adjusted basis,
with average pricing also higher than last year."

The company's 2006 guidance is based on exchange rates of $1.17 to the
euro and $1.73 to the sterling versus weighted average rates of $1.25
and $1.83 in 2005. Given the strengthening of the U.S. dollar relative
to the euro and sterling, constant dollar information is likely to
give a more accurate picture of the performance of the company's
cruise operations in 2006.

Based on bookings taken to date, the company expects that net revenue
yields for 2006 will increase approximately 1 to 3 percent (2 to 4
percent on a constant dollar basis), compared to last year.

Net cruise costs per ALBD for 2006 are expected to be flat to up 2
percent (up 1 to 3 percent on a constant dollar basis), compared to
2005. The company's cost guidance for fuel is based on the current
forward curve for all of 2006 of $322 per metric ton, which is
approximately $175 million, or $0.21 per share, higher than the
average prices for 2005. Excluding fuel, the company expects net
cruise costs per ALBD to be flat to down 2 percent on a constant
dollar basis.

The company's 2006 outlook for net cruise costs includes the impact of
two accounting matters. Commencing with the first quarter of 2006, the
company will adopt the new stock-based compensation accounting
standard and begin expensing stock options, which is expected to
increase 2006 full year expenses by $58 million. Also, commencing with
the first quarter of 2006, the company will change the amortization
period for dry-dock costs from one to two years, to two to three
years. This change in estimate reflects the lengthening of the time
between dry-docks, resulting from regulatory changes and technological
enhancements to the company's ships. In 2006, this change is expected
to reduce dry-dock amortization by approximately $40 million compared
to normal levels of dry-dock amortization.

Based on the foregoing, the company believes that 2006 earnings per
share will be between $3.00 and $3.10.

For the first quarter of 2006, the company expects net revenue yields
to increase 1 to 2 percent (3 to 4 percent on a constant dollar
basis), compared to last year. Net cruise costs per ALBD in the first
quarter of 2006 are expected to increase between 6 to 7 percent (9 to
10 percent on a constant dollar basis), compared to 2005, primarily
because of higher fuel costs. The company's cost guidance for fuel is
based on recent forward prices for the first quarter of 2006 at $312
per metric ton, which is approximately $80 million, or $0.09 per
share, higher than the average prices for the first quarter of 2005.
Excluding fuel, the company's cost guidance for the first quarter of
2006 is for net cruise costs per ALBD to be up 3 to 4 percent, on a
constant dollar basis, primarily due to the timing of advertising and
other expenses. Based on these estimates, the company expects diluted
earnings per share for the first quarter of 2006 to be in the range of
$0.34 to $0.36.

The company has three ships scheduled for delivery in 2006 -- Holland
America Line's 1,918-passenger Noordam in January, Princess Cruises'
3,100-passenger Crown Princess in May and Costa Cruises'
3,000-passenger Costa Concordia in June -- which represent a 5.5
percent increase in capacity. Earlier this week, the company announced
an agreement with Italian shipbuilder Fincantieri for the construction
of four new cruise ships -- two of which are scheduled to be delivered
in 2008 and two in 2009. Including these new ships, the company's
capacity growth is expected to increase 8.0 percent in 2007, 8.2
percent in 2008 and 6.4 percent in 2009.

Carnival has scheduled a conference call with analysts at 10 a.m. EST
(15.00 London time) today to discuss its 2005 fourth quarter and full
year earnings. This call can be listened to live, and additional
information can be obtained, via Carnival Corporation & plc's Web site
at http://www.carnivalcorp.com and http://www.carnivalplc.com.

Carnival Corporation & plc is the largest cruise vacation group in the
world, with a portfolio of 12 cruise brands in North America, Europe
and Australia, comprised of Carnival Cruise Lines, Holland America
Line, Princess Cruises, Seabourn Cruise Line, Windstar Cruises, AIDA
Cruises, Costa Cruises, Cunard Line, Ocean Village, P&O Cruises, Swan
Hellenic, and P&O Cruises Australia.

Together, these brands operate 79 ships totaling 137,000 lower berths
with 16 new ships scheduled to enter service between February 2006 and
fall 2009. Carnival Corporation & plc also operates the leading tour
companies in Alaska and the Canadian Yukon, Holland America Tours and
Princess Tours. Traded on both the New York and London Stock
Exchanges, Carnival Corporation & plc is the only group in the world
to be included in both the S&P 500 and the FTSE 100 indices.

Cautionary note concerning factors that may affect future results

Some of the statements contained in this earnings release are
"forward-looking statements" that involve risks, uncertainties and
assumptions with respect to Carnival Corporation & plc, including some
statements concerning future results, outlook, plans, goals and other
events which have not yet occurred. These statements are intended to
qualify for the safe harbors from liability provided by Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. You can find many, but not all, of these statements by
looking for words like "will," "may," "believes," "expects,"
"anticipates," "forecast," "future," "intends," "plans," and
"estimates" and for similar expressions. Because forward-looking
statements involve risks and uncertainties, there are many factors
that could cause Carnival Corporation & plc's actual results,
performance or achievements to differ materially from those expressed
or implied in this earnings release. Forward-looking statements
include those statements which may impact the forecasting of earnings
per share, net revenue yields, booking levels, pricing, occupancy,
operating, financing and/or tax costs, costs per ALBD, estimates of
ship depreciable lives and residual values, outlook or business
prospects. These factors include, but are not limited to, the
following: risks associated with the DLC structure, including the
uncertainty of its tax status; general economic and business
conditions, which may impact levels of disposable income of consumers
and the net revenue yields for cruise brands of Carnival Corporation &
plc; conditions in the cruise and land-based vacation industries,
including competition from other cruise ship operators and providers
of other vacation alternatives and increases in capacity offered by
cruise ship and land-based vacation alternatives; risks associated
with operating internationally; the implementation of U.S. regulations
requiring U.S. citizens to obtain passports for travel to or from
additional foreign destinations; the international political and
economic climate, armed conflicts, terrorist attacks and threats
thereof, availability of air service, other world events and adverse
publicity, and their impact on the demand for cruises; accidents and
other incidents affecting the health, safety, security and vacation
satisfaction of passengers, including machinery and equipment
failures, which could cause the alteration of itineraries or
cancellation of a cruise or a series of cruises and the impact of the
spread of contagious diseases; changing consumer preferences, which
may, among other things, adversely impact the demand for cruises; the
ability of Carnival Corporation & plc to implement its shipbuilding
programs and brand strategies and to continue to expand its business
worldwide; the ability of Carnival Corporation & plc to attract and
retain qualified shipboard crew and maintain good relations with
employee unions; the ability to obtain financing on terms that are
favorable or consistent with Carnival Corporation & plc's
expectations; the impact of changes in operating and financing costs,
including changes in foreign currency and interest rates and fuel,
food, payroll, insurance and security costs; changes in the tax,
environmental, health, safety, security and other regulatory regimes
under which Carnival Corporation & plc operates; continued
availability of attractive port destinations; the ability to
successfully implement cost improvement plans; continuing financial
viability of Carnival Corporation & plc's travel agent distribution
system and air service providers; and unusual weather patterns or
natural disasters, such as hurricanes and earthquakes.

Forward-looking statements should not be relied upon as a prediction
of actual results. Subject to any continuing obligations under
applicable law or any relevant listing rules, Carnival Corporation &
plc expressly disclaims any obligation to disseminate, after the date
of this release, any updates or revisions to any such forward-looking
statements to reflect any change in expectations or events, conditions
or circumstances on which any such statements are based.


CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Twelve Months
Ended
November 30, November
30,
2005 2004 2005
2004

(in millions, except per share
data)

Revenues
Cruise
Passenger tickets $1,946 $1,694 $8,379
$7,357
Onboard and other 574 516 2,356
2,070
Other 47 33 352
300
2,567 2,243 11,087
9,727
Costs and Expenses
Operating
Cruise
Commissions,
transportation
and other 368 345 1,665
1,572
Onboard and other 101 89 408
359
Payroll and related 284 265 1,145(1)
1,003
Food 150 138 615
550
Other ship operating 592 478 2,134
1,763
Other 38 27 250
210
Total 1,533 1,342 6,217
5,457
Selling and administrative 356 341 1,329
1,285
Depreciation and
amortization 230 213 902
812
2,119 1,896 8,448
7,554
Operating Income 448 347 2,639
2,173

Nonoperating (Expense) Income
Interest income 9 5 28
17
Interest expense, net
of capitalized interest (80) (72) (330)
(284)
Other income (expense),
net 6 4 (7)(2)
(5)
(65) (63) (309)
(272)

Income Before Income Taxes 383 284 2,330
1,901

Income Tax (Expense)
Benefit, Net (30) 10 (73)
(47)

Net Income $353 $294 $2,257
$1,854
Earnings Per Share
Basic $0.44 $0.37 $2.80
$2.31
Diluted $0.43 $0.36 $2.70
$2.24

Dividends Per Share $0.25 $0.15 $0.80
$0.525

Weighted-Average Shares
Outstanding - Basic 806 804 806
802
Weighted-Average Shares
Outstanding - Diluted 849 853 853
851

(1) Includes a $23 million expense related to the British Merchant
Navy
Officers Pension Fund contribution.

(2) Includes a $22 million expense for a non-cruise investment
write-down
and a $7 million gain from the settlement of litigation.



CARNIVAL CORPORATION & PLC
SELECTED STATISTICAL AND SEGMENT INFORMATION

Three Months Ended Twelve
Months Ended
November 30, November
30,
2005 2004 2005
2004

(in millions, except statistical
information)

STATISTICAL INFORMATION
Passengers carried 1,588,561 1,543,853 6,848,386
6,306,168
Available lower
berth days (1) 12,159,133 11,141,844 47,754,627
44,009,061
Occupancy percentage 102.7% 102.5% 105.6%
104.5%

SEGMENT INFORMATION
Revenues
Cruise $2,520 $2,210 $ 10,735
$9,427
Other 60 43 467
398
Intersegment elimination (13) (10) (115)
(98)
$2,567 $2,243 $ 11,087
$9,727

Operating expenses
Cruise $1,495 $1,315 $5,967
$5,247
Other 51 37 365
308
Intersegment elimination (13) (10) (115)
(98)
$1,533 $1,342 $6,217
$5,457

Selling and administrative
expenses
Cruise $343 $329 $1,276
$1,231
Other 13 12 53
54
$356 $341 $1,329
$1,285

Depreciation and amortization
Cruise $222 $208 $873
$791
Other 8 5 29
21
$230 $213 $902
$812

Operating income (loss)
Cruise $460 $358 $2,619
$2,158
Other (12) (11) 20
15
$448 $347 $2,639
$2,173

(1) Available lower berth days is the total passenger capacity for
the
period, assuming two passengers per cabin, that we offer for
sale,
which is computed by multiplying passenger capacity by
revenue-producing ship operating days in the period.



CARNIVAL CORPORATION & PLC
GAAP TO NON-GAAP RECONCILING INFORMATION

Gross and net revenue yields were computed by dividing the gross
or net
revenues, without rounding, by ALBDs as follows:

Three Months Ended Twelve
Months Ended
November 30,
November 30,
2005 2004 2005
2004

(in millions, except ALBDs and
yields)

Cruise revenues
Passenger tickets $1,946 $1,694 $8,379
$7,357
Onboard and other 574 516 2,356
2,070
Gross cruise revenues 2,520 2,210 10,735
9,427
Less cruise costs
Commissions,
transportation
and other (368) (345) (1,665)
(1,572)
Onboard and other (101) (89) (408)
(359)
Net cruise revenues (1) $2,051 $1,776 $8,662
$7,496

ALBDs 12,159,133 11,141,844 47,754,627
44,009,061

Gross revenue yields(1) $207.29 $ 198.28 $224.80
$214.21

Net revenue yields (1) $168.71 $ 159.31 $181.39
$170.32


Gross and net cruise costs per ALBD were computed by dividing the
gross or
net cruise costs, without rounding, by ALBDs as follows:

Three Months Ended Twelve
Months Ended
November 30, November
30,
2005 2004 2005
2004

(in millions, except ALBDs and costs
per ALBD)

Cruise operating expenses $1,495 $1,315 $5,967
$5,247
Cruise selling and
administrative expenses 343 329 1,276
1,231
Gross cruise costs 1,838 1,644 7,243
6,478
Less cruise costs
included in net
cruise revenues
Commissions,
transportation and other (368) (345) (1,665)
(1,572)
Onboard and other (101) (89) (408)
(359)
Net cruise costs (1) $1,369 $1,210 $5,170
$4,547

ALBDs 12,159,133 11,141,844 47,754,627
44,009,061

Gross cruise costs
per ALBD (1) $151.18 $ 147.44 $151.67
$147.20
Net cruise costs
per ALBD (1) $112.60 $ 108.47 $108.25 $
103.31



NOTE TO GAAP TO NON-GAAP RECONCILING INFORMATION

(1) We use net cruise revenues per ALBD ("net revenue yields") and
net
cruise costs per ALBD as significant non-GAAP financial
measures of
our cruise segment financial performance. We believe that net
revenue
yields are commonly used in the cruise industry to measure a
company's
cruise segment revenue performance. This measure is also used
for
revenue management purposes. In calculating net revenue
yields, we
use "net cruise revenues" rather than "gross cruise revenues."
We
believe that net cruise revenues is a more meaningful measure
in
determining revenue yield than gross cruise revenues because
it
reflects the cruise revenues earned by us net of our most
significant
variable costs, which are travel agent commissions, cost of
air
transportation and certain other variable direct costs
associated with
onboard revenues. Substantially all of our remaining cruise
costs are
largely fixed once our ship capacity levels have been
determined.

Net cruise costs per ALBD is the most significant measure we
use to
monitor our ability to control our cruise segment costs rather
than
gross cruise costs per ALBD. In calculating net cruise costs,
we
exclude the same variable costs as described above, which are
included
in the calculation of net cruise revenues. This is done to
avoid
duplicating these variable costs in these two non-GAAP
financial
measures.

We have not provided estimates of future gross revenue yields
or
future gross cruise costs per ALBD because the reconciliations
of
forecasted net cruise revenues to forecasted gross cruise
revenues or
forecasted net cruise costs to forecasted cruise operating
expenses
would require us to forecast, with reasonable accuracy, the
amount of
air and other transportation costs that our forecasted cruise
passengers would elect to purchase from us (the "air/sea
mix"). Since
the forecasting of future air/sea mix involves several
significant
variables that are relatively difficult to forecast and the
revenues
from the sale of air and other transportation approximate the
costs of
providing that transportation, management focuses primarily on
forecasts of net cruise revenues and costs rather than gross
cruise
revenues and costs. This does not impact, in any material
respect,
our ability to forecast our future results, as any variation
in the
air/sea mix has no material impact on our forecasted net
cruise
revenues or forecasted net cruise costs. As such, management
does not
believe that this reconciling information would be meaningful.

We also monitor these two non-GAAP financial measures assuming
the
current year exchange rates have remained constant with the
prior year
comparable period rates, or on a "constant dollar basis," in
order to
remove the impact of changes in exchange rates on our non-U.S.
dollar
cruise operations. On a constant dollar basis, net cruise
revenues
and net cruise costs would be $2.07 billion and $1.38 billion
for the
three month period ended November 30, 2005, and $8.63 billion
and
$5.15 billion for the twelve month period ended November 30,
2005,
respectively.

With a record annual net income of over two billion dollars, maybe
Carnival can start thinking of paying their employees a decent wage so
that the customers don't have to make up the difference through their
gratuity program.

Aloha

another liberal shows his ignorance, to wit:


"Mark O. Polo" wrote in message
...
With a record annual net income of over two billion dollars, maybe
Carnival can start thinking of paying their employees a decent wage so
that the customers don't have to make up the difference through their
gratuity program.

Aloha

If the wages paid by the cruise lines along with the gratuities paid by the
passengers weren't better than what the employees can earn at home, why
would any of the people who work aboard these ships endure the work load?

It isn't a political issue, Lauren, so why make it one?
--
DG in Cherry Hill, NJ

(* _ *)

"Lauren" wrote in message
...
another liberal shows his ignorance, to wit:


"Mark O. Polo" wrote in message
...
With a record annual net income of over two billion dollars, maybe
Carnival can start thinking of paying their employees a decent wage so
that the customers don't have to make up the difference through their
gratuity program.

Aloha