Carnival Corp Record 2nd Quarter Earnings!

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Carnival Corporation & plc Reports Record Second Quarter Earnings

MIAMI, June 16
Carnival Corporation & plc (NYSE: CCL; LSE) (NYSE: CUK) reported
record net income of $409 million, or $0.49 diluted EPS, on revenues
of $2.52 billion for its second quarter ended May 31, 2005. Net income
for the second quarter of 2004 was $332 million, or $0.40 diluted EPS,
on revenues of $2.26 billion. Previously announced cancelled voyages
reduced second quarter 2005 earnings by approximately $0.03 per share.

Net income for the six months ended May 31, 2005 was $753 million, or
$0.91 diluted EPS, on revenues of $4.92 billion, compared to net
income of $535 million, or $0.66 diluted EPS, on revenues of $4.24
billion for the same period in 2004.

The increase in second quarter earnings was driven by both a 5.3
percent increase in new cruise capacity and a significant growth in
cruise net revenue yields (revenue per available berth day), which
more than offset substantially higher fuel costs. Net revenue yields
for the second quarter of 2005 increased 8.4 percent compared to the
prior year, primarily due to higher cruise ticket prices and, to a
lesser extent, higher occupancy and the weak U.S. dollar relative to
the euro and sterling. Net revenue yields as measured on a local
currency basis ("constant dollar basis") increased 6.8 percent over
the same period last year. Gross revenue yields increased 5.7 percent.

Net cruise costs per available lower berth day ("ALBD") for the second
quarter of 2005 increased 7.3 percent compared to last year. On a
constant dollar basis, net cruise costs per ALBD increased 5.4 percent
from the same period last year. The increase in constant dollar costs
per ALBD was primarily due to a 35 percent increase in fuel prices,
and to a lesser extent, higher unit costs due to the aforementioned
voyage cancellations and higher dry-dock amortization expense. Gross
cruise costs per ALBD increased 4.0 percent.

Carnival Corporation & plc Chairman and CEO Micky Arison said he was
very pleased with the continuing strong growth in demand for the
company's cruise products. "The recognition by consumers of the
extraordinary value of our cruise products helped to increase our net
revenue yields by over 8 percent in the second quarter -- the fifth
straight quarter of net revenue yield increases of 7 percent or
better," he said. "The strong revenue yield performance enabled us to
grow net income over 23 percent in the second quarter despite
historically high fuel costs," Arison added.

Outlook for the Remainder of 2005

Regarding advance bookings, Arison stated, "We came into the second
quarter of 2005 with significantly less inventory remaining to be sold
versus the same time last year, despite an 8.5 percent increase in
2005 capacity." He added that pricing for bookings taken during the
second quarter this year was significantly higher than last year,
while booking volumes were lower since there was less inventory
remaining to sell. Arison further stated, "At the end of the second
quarter, we achieved higher occupancy rates for the last six months of
this year than at the same time last year, with higher average prices,
which puts us in an excellent position to achieve higher revenue
yields in the second half of 2005."

Assuming a continuing strong demand for travel, the company has
increased its expectation for net revenue yields for the last six
months of 2005, on a constant dollar basis, by approximately 1 percent
to an increase of 4.5 to 5.5 percent, compared to last year. The
company's forward guidance is the same in both current dollars and
constant dollars as the currency exchange rates the company has used
in its forward guidance ($1.23 to the euro and $1.83 to the sterling)
is approximately the same as the actual exchange rates in effect
during the second half of 2004. The company estimates that net cruise
costs per ALBD for the remainder of 2005 are expected to increase by 3
to 4 percent, compared to 2004. The increase in forecasted costs per
ALBD versus last year is largely due to higher fuel prices. The
company's cost guidance for fuel is based on recent forward prices for
fuel for the balance of the year, which is 30 percent higher than
average prices for the last half of fiscal 2004. Excluding the higher
fuel costs, the company's forecast for net cruise costs per ALBD for
the balance of 2005 is approximately the same as the prior year.

Based on these estimates, the company expects that diluted earnings
per share for the year 2005 will increase approximately 21 percent,
compared to the prior year. Diluted earnings per share for 2005 are
expected to be $2.70 (versus the company's prior guidance of $2.67 per
share) with higher net revenue yield expectations partly offset by
higher fuel costs and a reduced contribution to earnings from foreign
currency translation.

For the third quarter of 2005, the company expects net revenue yields
to increase 4.5 to 5.5 percent, compared to last year. Net cruise
costs per ALBD are expected to be up 6 to 7 percent, compared to last
year, primarily due to forecasted higher fuel prices, and to a lesser
extent, higher dry-dock amortization and timing of other ship
operating costs. Based on these estimates, the company expects diluted
earnings per share for the third quarter of 2005 to be in the range of
$1.33 to $1.35.

The company has one ship scheduled to enter service during the third
quarter of 2005. Carnival Cruise Lines' 2,974-passenger Carnival
Liberty will launch the line's first-ever Mediterranean cruise program
beginning July 20, 2005.

Carnival has scheduled a conference call with analysts at 10 a.m. EDT
(15.00 London time) today to discuss its 2005 second quarter 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 78 ships totaling more than 134,000
lower berths with 12 new ships scheduled for delivery between July
2005 and April 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; proposed legislation mandating that
U.S. citizens carry a passport for travel to or from certain countries
that were previously exempt; 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 cancellation of a cruise or a series
of cruises; changing public and consumer tastes and 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 and to integrate
business acquisitions; 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 May 31, Six Months Ended
May 31,
2005 2004(1) 2005
2004(1)
(in millions, except per share
data)
Revenues
Cruise
Passenger tickets $1,899 $1,691 $3,740
$3,218
Onboard and other 570 526 1,116
973
Other 50 36 59
45
2,519 2,253 4,915
4,236
Costs and Expenses
Operating
Cruise
Commissions,
transportation
and other 383 376 814
760
Onboard and other 95 97 191
178
Payroll and related 284 249 558
486
Food 151 137 305
264
Other ship operating 515 434 972
814
Other 42 33 54
43
Total 1,470 1,326 2,894
2,545
Selling and
administrative 342 322 675
638
Depreciation and
amortization 225 200 446
388
2,037 1,848 4,015
3,571
Operating Income 482 405 900
665

Nonoperating (Expense) Income
Interest income 6 4 9
9
Interest expense,
net of capitalized
interest (82) (70) (168)
(136)
Other income (expense), net 3 (7) 10(2)
(7)
(73) (73) (149)
(134)

Income Before Income Taxes 409 332 751
531

Income Tax Benefit, Net 2
4

Net Income $409 $332 $753
$535

Earnings Per Share
Basic $0.51 $0.41 $0.94
$0.67
Diluted $0.49 $0.40(3) $0.91
$0.66(3)

Dividends Per Share $0.20 $0.125 $0.35
$0.25

Weighted-Average Shares
Outstanding - Basic 805 803 805
801
Weighted-Average Shares
Outstanding - Diluted 854 850(3) 855
849(3)

(1) Reclassifications have been made to certain 2004 amounts to
conform
to the current period presentation.
(2) Includes a $7 million gain from the settlement of litigation.
(3) Restated for the adoption in the fourth quarter of 2004 of
EITF No.
04-08.



CARNIVAL CORPORATION & PLC
SELECTED STATISTICAL AND SEGMENT INFORMATION

Three Months Ended May 31, Six Months Ended
May 31,
2005 2004(1) 2005
2004(1)
(in millions, except statistical
information)

STATISTICAL INFORMATION
Passengers carried 1,687,459 1,565,903 3,306,332
2,912,868
Available lower berth
days(2) 11,711,830 11,120,445 23,298,274
21,183,100
Occupancy percentage 104.8% 102.8% 104.3%
102.4%

SEGMENT INFORMATION
Revenues
Cruise $2,469 $2,217 $4,856
$4,191
Other 61 43 74
54
Intersegment elimination (11) (7) (15)
(9)
$2,519 $2,253 $4,915
$4,236

Operating expenses
Cruise $1,428 $1,293 $2,840
$2,502
Other 53 40 69
52
Intersegment elimination (11) (7) (15)
(9)
$1,470 $1,326 $2,894
$2,545

Selling and administrative expenses
Cruise $325 $308 $647
$610
Other 17 14 28
28
$342 $322 $675
$638

Operating income (loss)
Cruise $499 $421 $939
$702
Other (17) (16) (39)
(37)
$482 $405 $900
$665

(1) Reclassifications have been made to certain 2004 amounts to
conform to
the current period presentation.
(2) 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 May 31, Six Months Ended
May 31,
2005 2004 2005
2004
(in millions, except ALBDs and
yields)

Cruise revenues
Passenger tickets $1,899 $1,691 $3,740
$3,218
Onboard and other 570 526 1,116
973
Gross cruise revenues 2,469 2,217 4,856
4,191

Less cruise costs
Commissions, transportation
and other (383) (376) (814)
(760)
Onboard and other (95) (97) (191)
(178)
Net cruise revenues(1) $1,991 $1,744 $3,851
$3,253

ALBDs 11,711,830 11,120,445 23,298,274
21,183,100

Gross revenue yields(1) $210.82 $199.37 $208.45
$197.88

Net revenue yields(1) $170.01 $156.81 $165.32
$153.60


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 May 31, Six Months Ended
May 31,
2005 2004 2005
2004
(in millions, except ALBDs and costs per
ALBD)

Cruise operating
expenses $1,428 $1,293 $2,840
$2,502
Cruise selling and
administrative expenses 325 308 647
610
Gross cruise costs 1,753 1,601 3,487
3,112

Less cruise costs included
in net cruise revenues
Commissions, transportation
and other (383) (376) (814)
(760)
Onboard and other (95) (97) (191)
(178)
Net cruise costs (1) $1,275 $1,128 $2,482
$2,174

ALBDs 11,711,830 11,120,445 23,298,274
21,183,100

Gross cruise costs
per ALBD (1) $149.73 $144.03 $149.67
$146.92

Net cruise costs per
ALBD(1) $108.92 $101.47 $106.54
$102.64


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
2005 exchange rates have remained constant with the 2004
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 $1.96 billion and $1.25 billion for the
three
month period ended May 31, 2005, and $3.80 billion and $2.44
billion
for the six month period ended May 31, 2005, respectively.

On Thu, 16 Jun 2005 15:51:14 GMT, Curtis wrote:

Got any cruising news?

Give him ten more seconds.
--
http://www.no2id.net/content/flash02.html

"Curtis" wrote
Got any cruising news?

I think this is cruising news. As the largest company in the industry,
Carnival is the bellwether. What I get out of this news release is that
their inventory of available cabins is headed down, their occupancy is way
up, and so are their prices. And they expect more of the same going
forward.

The message is that waiting until the very last minute might get you a deal,
and thorough searching might do likewise, but for the average person with
not-very-flexible vacation planning abilities, it might be best to lock in
your cabin of choice for next year's cruise now with a deposit. This is a
significant trend change in the industry over what has occurred the past few
years, certainly since 9/11.

What's happening is that both RCL and CCL have absorbed the glut of ships
they purchased prior to 9/11, but took delivery of afterwards. I believe
all of CCL expects to add only 2 new ships this year. Is RCL adding any?
If demand increases as it has been, and with a 5% or less increase in supply
of available cabins, prices will go up.

Duane