Carnival Corporation & plc Reports First Quarter Earnings

MIAMI, March 24 /PRNewswire-FirstCall/ -- Carnival Corporation & plc
(NYSE/LSE: CCL; NYSE: CUK) reported net income of $260 million, or $0.33
diluted EPS, on revenues of $2.9 billion for its first quarter ended February
28, 2009. Net income for the first quarter of 2008 was $236 million, or $0.30
diluted EPS, on revenues of $3.2 billion.

Carnival Corporation & plc Chairman and CEO Micky Arison indicated that
operating results in the first quarter were better than the company's December
guidance due primarily to lower than expected net cruise costs and stronger
than expected net revenue yields on close-in bookings.

Commenting on first quarter results, Arison said that "considering the
economic climate, achieving higher quarterly net income is quite remarkable.
The effect of lower revenue yields resulting from the pull back by the
consumer was offset by the fall in fuel prices from prior year levels. Our
continued focus on cost controls also played a meaningful role in our ability
to achieve such positive results."

Key metrics for the first quarter of 2009 compared to the prior year were as
follows:

-- On a constant dollar basis net revenue yields (revenue per available
lower berth day) decreased 5.2 percent for Q1 2009. Net revenue yields
in current dollars decreased 11.1 percent due to unfavorable currency
exchange rates. Gross revenue yields decreased 11.2 percent.
-- Excluding fuel, net cruise cost per available lower berth day
("ALBD") for Q1 2009 was 1.4 percent higher on a constant
dollar basis due to higher dry-dock costs.
-- Including fuel, net cruise costs per ALBD decreased 9.2 percent on a
constant dollar basis (decreased 14.5 percent in current dollars).
Gross
cruise costs per ALBD decreased 13.8 percent.
-- Fuel price decreased 45 percent to $276 per metric ton for Q1 2009
from
$499 per metric ton in Q1 2008 and was slightly below the December
guidance of $295 per metric ton.

2009 Outlook
Since the start of the calendar year, booking volumes for the remaining three
quarters are running 10 percent ahead of the prior year but at significantly
lower prices. At this time, cumulative advance bookings for the remainder of
the year are still behind last year's levels as the booking curve has moved
closer to sailing date. Ticket prices for these bookings are also at
substantially lower levels.

Arison noted "it has been a solid wave season thus far, despite the
challenging economic environment, with several of our brands achieving record
booking volumes. As we had anticipated, people continue to book cruise
vacations while seeking the best possible value. Our brands have responded
with a variety of pricing initiatives designed to provide our guests with the
most value for their vacation dollars. Though pricing is down significantly we
continue to fill our ships by reaching people who might not have otherwise
considered a cruise vacation."

"As we look forward in 2009, we remain confident that the fundamental
long-term drivers of our business remain intact. To enable us to overcome
challenges in these difficult times, we have focused on maintaining tight cost
controls and a strong liquidity position. The discipline instilled in our cost
conscious culture is a particular advantage as our cost containment
initiatives continue to mitigate the pressure on revenue yields," Arison
added.

Carnival has sixteen ships under construction to be delivered through 2012 at
a cost of $9 billion, the majority of which is expected to be funded by cash
from operations. Cash from operations, committed financing facilities and
available cash are forecasted to be sufficient to fund the company's cash
requirements for 2009. Although the company will not need to obtain new
financing for 2009, it will continue to look for low cost opportunities to
enhance its liquidity. At the end of the first quarter the company had $3.7
billion of liquidity, which includes $1.8 billion of available cash and
undrawn credit lines, as well as $1.9 billion of committed ship financing
facilities. In addition, Carnival continues to have the highest credit rating
in the leisure industry.

The company expects full year net revenue yields, on a constant dollar basis,
to decrease 10 to 12 percent compared to 6 to 10 percent in the company's
December guidance as a result of the further deterioration in the U.S. and
European economies. The company now forecasts a 16 to 18 percent decline in
net revenue yields on a current dollar basis for the full year 2009 compared
to 2008 caused by the weakening of foreign currencies against the U.S. dollar.

The company expects net cruise costs excluding fuel for the full year 2009 to
be in line with the prior year on a constant dollar basis compared to an
increase of 2 percent in its December guidance.

Since the December guidance, the movement in currency exchange rates has
largely been offset by the continued decline in fuel prices. The company's
revised 2009 guidance is based on current spot prices for fuel of $280 per
metric ton and currency exchange rates of $1.36 to the euro and $1.44 to
sterling.

Taking all the above factors into consideration, the company now forecasts
full year 2009 earnings per share to be in the range of $2.10 to $2.30,
compared to its previous guidance range of $2.25 to $2.75.

Second Quarter 2009
Second quarter constant dollar net revenue yields are expected to decline in
the 8 to 10 percent range (down 15 to 17 percent on a current dollar basis).
Net cruise costs excluding fuel for the second quarter are expected to be
approximately 4 percent higher on a constant dollar basis due in part to the
timing of certain expenses, including advertising, dry-dock and repairs and
maintenance.

Based on current fuel prices and currency exchange rates, the company expects
earnings for the second quarter of 2009 to be in the range of $0.30 to $0.32
per share, down from $0.49 per share in 2008.

During the second quarter three new ships will debut in Europe- AIDA Cruises'
2,050-passenger AIDAluna and Costa Cruises' 2,260-passenger Costa Luminosa and
the 2,990-passenger Costa Pacifica.

Selected Key Forecast Metrics

Full Year 2009 Second Quarter 2009
Current Constant Current Constant
Dollars Dollars Dollars Dollars
Change in:
Net revenue yields (16) to (18)% (10) to (12)% (15) to (17)% (8) to (10)%
Net cruise cost per
ALBD (15) to (17)% (11) to (13)% (13) to (15)% (7) to (9)%

Full Year 2009 Second Quarter 2009

Fuel price per metric ton $279 $285
Fuel consumption (metric
tons in thousands) 3,233 820
Currency
Euro $1.35 to euro 1 $1.36 to euro 1
Sterling $1.45 to pound Sterling 1 $1.44 to pound Sterling 1

The company has scheduled a conference call with analysts at 10:00 a.m. EDT
(2:00 p.m. GMT) today to discuss its 2009 first quarter earnings. This call
can be listened to live, and additional information can be obtained, via
Carnival Corporation & plc's Web site at www.carnivalcorp.com and
www.carnivalplc.com.

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

Together, these brands operate 89 ships totaling more than 171,000 lower
berths with 16 new ships scheduled to be delivered between April 2009 and June
2012. Carnival Corporation & plc also operates Holland America Tours and
Princess Tours, the leading tour companies in Alaska and the Canadian Yukon.
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, estimates or projections 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, outlooks, 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. We have tried,
whenever possible, to identify these statements by using words like "will,"
"may," "could," "should," "would," "believe," "expect," "anticipate,"
"forecast," "future," "intend," "plan," "estimate" and similar expressions of
future intent or the negative of such terms. 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 Carnival Corporation and plc's earnings per share, net revenue
yields, booking levels, pricing, occupancy, operating, financing and/or tax
costs, fuel expenses, costs per available lower berth day, estimates of ship
depreciable lives and residual values, liquidity, goodwill and trademark fair
values, outlook or business prospects. These factors include, but are not
limited to, the following: general economic and business conditions, including
fuel price increases and declines in the securities, real estate and other
markets, and perceptions of these conditions may adversely impact the levels
of Carnival Corporation & plc's potential vacationers' discretionary income
and net worth and this group's confidence in their country's economy;
fluctuations in foreign currency exchange rates, particularly the
strengthening of the U.S. dollar against the euro and sterling; the
international political climate, armed conflicts, terrorist and pirate attacks
and threats thereof, and other world events affecting the safety and security
of travel; conditions in the cruise and land-based vacation industries,
including competition from other cruise ship operators and providers of other
vacation alternatives and overcapacity offered by cruise ship and land-based
vacation alternatives; accidents, adverse weather conditions or natural
disasters, such as hurricanes and earthquakes and other incidents (including
machinery and equipment failures or improper operation thereof) which could
cause injury or death or the alteration of itineraries or cancellation of a
cruise or series of cruises or tours, and the impact of the spread of
contagious diseases; adverse publicity concerning the cruise industry in
general, or Carnival Corporation & plc in particular; lack of acceptance of
new itineraries, products and services by Carnival Corporation & plc's guests;
changing consumer preferences; changes in and compliance with laws and
regulations relating to environmental, health, safety, security, tax,
employment and other regulatory regimes under which Carnival Corporation &
plc operate; increases in global fuel demand and pricing, fuel supply
disruptions and/or other events on Carnival Corporation & plc fuel and other
expenses, liquidity and credit ratings; increases in Carnival Corporation
plc's future fuel expenses of implementing recently approved International
Maritime Organization regulations, which require the use of higher priced low
sulfur fuels in certain cruising areas; changes in operating and financing
costs, including changes in interest rates, food, insurance, payroll and
security costs; the ability of Carnival Corporation & plc to implement its
shipbuilding programs and ship refurbishments and repairs, including ordering
additional ships for its cruise brands from European shipyards on terms that
are favorable or consistent with Carnival Corporation & plc's expectations and
continuing financial viability of shipyards; Carnival Corporation & plc's
ability to implement its brand strategies and to continue to operate and
expand its business internationally; whether Carnival Corporation & plc's
future operating cash flow will be sufficient to fund future obligations and
whether Carnival Corporation & plc will be able to obtain financing, if
necessary, in sufficient amounts and on terms that are favorable or consistent
with its expectations; Carnival Corporation & plc's ability to attract and
retain qualified shipboard crew and maintain good relations with employee
unions; continuing financial viability of Carnival Corporation & plc's travel
agent distribution system and air service providers; availability and pricing
of air travel services, especially as a result of any significant increases in
air travel costs; changes in the global credit markets on Carnival Corporation
& plc's counterparty risks, including those associated with its cash
equivalents, committed financing facilities, contingent obligations,
derivative instruments, insurance contracts and new ship progress payment
guarantees; Carnival Corporation & plc decision to self-insure against various
risks or its inability to obtain insurance for certain risks at reasonable
rates; disruptions and other damages to Carnival Corporation & plc's
information technology networks; lack of continued availability of attractive
port destinations; and risks associated with the dual listed company
structure, including the uncertainty of its tax status. 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 disclaim 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 February 28/29,
---------------------------------
2009 2008
---- ----
(in millions, except per share data)
Revenues
Cruise
Passenger tickets $2,219 $2,438
Onboard and other 634 702
Other 11 12
--- ---
2,864 3,152
----- -----
Costs and Expenses
Operating
Cruise
Commissions, transportation and other 514 558
Onboard and other 104 125
Payroll and related 352 360
Fuel 208 392
Food 198 207
Other ship operating 458 454
Other 16 18
--- ---
Total 1,850 2,114
Selling and administrative 392 425
Depreciation and amortization 311 301
--- ---
2,553 2,840
----- -----

Operating Income 311 312
--- ---

Nonoperating (Expense) Income
Interest income 4 10
Interest expense, net of capitalized interest (96) (98)
Other income, net 19 (a) 2
--- ---
(73) (86)
---- ----

Income Before Income Taxes 238 226

Income Tax Benefit, Net 22 (b) 10
--- ---

Net Income $260 $236
==== ====

Earnings Per Share
Basic $0.33 $0.30
===== =====
Diluted $0.33 $0.30
===== =====

Dividends Declared Per Share $0.40
=====

Weighted-Average Shares Outstanding - Basic 787 786
=== ===
Weighted-Average Shares Outstanding -Diluted 803 814
=== ===

(a) Includes a $15 million gain from the unwinding of a lease out and
lease back type transaction.
(b) Includes a $17 million gain from the reversal of uncertain income tax
position liabilities, which were no longer required.

CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS

Feb. 28, Nov. 30, Feb. 29,
2009 2008 2008
-------- -------- --------
(in millions, except par values)
ASSETS
Current Assets
Cash and cash equivalents $607 $650 $966
Trade and other receivables, net 402 418 434
Inventories 305 315 331
Prepaid expenses and other 245 267 292
--- --- ---
Total current assets 1,559 1,650 2,023
----- ----- -----

Property and Equipment, Net 26,225 26,457 26,542

Goodwill 3,225 3,266 3,593

Trademarks 1,281 1,294 1,389

Other Assets 546 733 598
--- --- ---
$32,836 $33,400 $34,145
======= ======= =======

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $283 $256 $188
Current portion of long-term debt 1,269 1,081 1,333
Convertible debt subject to current put
options 273 271 1,398
Accounts payable 496 512 477
Accrued liabilities and other 739 1,142 1,203
Customer deposits 2,280 2,519 2,794
----- ----- -----
Total current liabilities 5,340 5,781 7,393
----- ----- -----

Long-Term Debt 7,690 7,735 6,271

Other Long-Term Liabilities and Deferred
Income 652 786 741

Shareholders' Equity
Common stock of Carnival Corporation;
$0.01 par value; 1,960 shares
authorized; 644 shares at 2009 and 643
shares at November and February 2008
issued 6 6 6
Ordinary shares of Carnival plc; $1.66
par value; 226 shares authorized; 213
shares at 2009 and 2008 issued 354 354 354
Additional paid-in capital 7,687 7,677 7,626
Retained earnings 14,240 13,980 12,832
Accumulated other comprehensive (loss)
income (847) (623) 1,219
Treasury stock; 18 shares at 2009 and
19 shares at November and February 2008
of Carnival Corporation and 52 shares at
2009 and November 2008 and 51 shares at
February 2008 of Carnival plc, at cost (2,286) (2,296) (2,297)
----- ----- -----
Total shareholders' equity 19,154 19,098 19,740
------ ------ ------
$32,836 $33,400 $34,145
======= ======= =======

CARNIVAL CORPORATION & PLC
SELECTED INFORMATION

Three Months Ended February 28/29,
---------------------------------
2009 2008
---- ----
(in millions, except statistical information)

STATISTICAL INFORMATION
Passengers carried (in thousands) 1,869 1,910
Occupancy percentage 103.9% 104.3%
Fuel consumption (metric tons in
thousands) 752 785
Fuel cost per metric ton (a) $276 $499
Currency
U.S. dollar to euro 1 $1.32 $1.47
U.S. dollar to pound Sterling 1 $1.46 $1.98

CASH FLOW INFORMATION
Cash from operations $305 $373
Capital expenditures $306 $258
Dividends paid $314 $316

SEGMENT INFORMATION
Revenues
Cruise $2,853 $3,140
Other 13 14
Intersegment elimination (2) (2)
--- ---
$2,864 $3,152
====== ======

Operating expenses
Cruise $1,834 $2,096
Other 18 20
Intersegment elimination (2) (2)
--- ---
$1,850 $2,114
====== ======

Selling and administrative expenses
Cruise $384 $417
Other 8 8
--- ---
$392 $425
==== ====

Depreciation and amortization
Cruise $302 $292
Other 9 9
--- ---
$311 $301
==== ====

Operating income (loss)
Cruise $333 $335
Other (22) (23)
---- ----
$311 $312
==== ====

(a) Fuel cost per metric ton is calculated by dividing the cost of our
fuel by the number of metric tons consumed.

CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES

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

Three Months Ended February 28/29,
---------------------------------
2009 2008
---- ----
(in millions, except ALBDs and yields)

Cruise revenues
Passenger tickets $2,219 $2,438
Onboard and other 634 702
--- ---
Gross cruise revenues 2,853 3,140
Less cruise costs
Commissions, transportation and
other (514) (558)
Onboard and other (104) (125)
----- -----
Net cruise revenues (a) $2,235 $2,457
====== ======

ALBDs (b) 14,492,250 14,161,289
========== ==========

Gross revenue yields (a) $196.84 $221.71
======= =======

Net revenue yields (a) $154.25 $173.45
======= =======

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 February 28/29,
---------------------------------
2009 2008
---- ----
(in millions, except ALBDs and costs per ALBD)

$1,834 $2,096
Cruise operating expenses
Cruise selling and administrative
expenses 384 417
--- ---
Gross cruise costs 2,218 2,513
Less cruise costs included in net
cruise revenues
Commissions, transportation and other (514) (558)
Onboard and other (104) (125)
----- -----
Net cruise costs (a) $1,600 $1,830
====== ======

ALBDs (b) 14,492,250 14,161,289
========== ==========

Gross cruise costs per ALBD (a) $153.02 $177.48
======= =======

Net cruise costs per ALBD (a) $110.43 $129.22
======= =======

NOTES TO NON-GAAP FINANCIAL MEASURES

(a) 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. These measures enable us
to separate the impact of predictable capacity changes from the more
unpredictable rate changes that affect our business. We believe these
non -GAAP measures provide a better gauge to measure our revenue and
cost performance instead of the standard U.S. GAAP-based financial
measures. There are no specific rules for determining our non-GAAP
financial measures and, accordingly, it is possible that they may not
be exactly comparable to the like-kind information presented by other
cruise companies, which is a potential risk associated with using
them to compare us to other cruise companies.

Net revenue yields are commonly used in the cruise industry to
Measure a company's cruise segment revenue performance and for
revenue management purposes. We use "net cruise revenues" rather than
"gross cruise revenues" to calculate net revenue yields. 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 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 and other
revenues. Substantially all of our remaining cruise costs are largely
fixed, except for the impact of changing prices, 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. We exclude the same variable costs that
are included in the calculation of net cruise revenues to calculate
net cruise costs 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.

In addition, because a significant portion of Carnival Corporation &
plc's operations utilize the euro or sterling to measure their
results and financial condition, the translation of those operations
to our U.S. dollar reporting currency results in decreases in
reported U.S. dollar revenues and expenses if the U.S. dollar
strengthens against these foreign currencies, and increases in
reported U.S. dollar revenues and expenses if the U.S. dollar weakens
against these foreign currencies. Accordingly, we also monitor and
report our two non-GAAP financial measures assuming the current
period currency exchange rates have remained constant with the prior
year's 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. We believe that this is a useful
measure since it facilitates a comparative view of the growth of our
business in a fluctuating currency exchange rate environment.

On a constant dollar basis, net cruise revenues and net cruise costs
would be $2.4 billion and $1.7 billion for the three months ended
February 28, 2009, respectively. On a constant dollar basis, gross
cruise revenues and gross cruise costs would be $3.1 billion and $2.4
billion for the three months ended February 28, 2009, respectively.
In addition, our non-U.S. dollar cruise operations' depreciation and
net interest expense were impacted by the changes in exchange rates
for the three months ended February 28, 2009, compared to the prior
year's comparable period.

(b) ALBDs is a standard measure of passenger capacity for the period,
which we use to perform rate and capacity variance analyses to
determine the main non-capacity driven factors that cause our cruise
revenues and expenses to vary. ALBDs assume that each cabin we offer
for sale accommodates two passengers and is computed by multiplying
passenger capacity by revenue-producing ship operating days in the
period.

SOURCE Carnival Corporation

Tim Gallagher, +1-305-599-2600, ext. 16000, or Investor Relations: Beth
Roberts, +1-305-406-4832, both of Carnival Corporation & plc