Exhibit 99.1
CARNIVAL CORPORATION & PLC REVISES 2006 OUTLOOK
MIAMI (May 16, 2006) -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE:
CUK) announced today that it is revising 2006 earnings guidance based on several
items, including lower revenue yields, higher fuel costs and a change in
accounting.
Earnings for fiscal 2006 are now expected to be in the range of $2.65 to
$2.75 per share, roughly in line with 2005 earnings of $2.70 per share. The
company expects earnings for the second quarter of 2006 to be in the range of
$0.43 to $0.45 per share.
Details of the revisions to the company's guidance are as follows:
o The company has reduced its outlook for net revenue yield
improvement on a local currency basis ("constant dollar basis") due
to further weakness in bookings, principally for sailings in the
Caribbean during the second half of 2006. Net revenue yields (net
revenue per available lower berth day) for the year in constant
dollars are now expected to increase 1 to 2% versus the company's
previous guidance of an increase of approximately 2 to 3%. This will
reduce earnings by approximately $0.10 per share. Because of the
strengthening of the euro and sterling relative to the U.S. dollar
since the time of its last guidance in March, the company continues
to expect full year 2006 net revenue yields in current dollars to
increase approximately 1 to 2%.
o Since the company's previous guidance, fuel costs have increased
significantly and are expected to further impact earnings per share
for the year 2006 by approximately $0.07. The cumulative impact of
higher fuel prices for full year 2006 is expected to be $265
million, or $0.32 per share, compared to the prior year. The
company's guidance is based on the forward curve for fuel for the
remainder of the year of approximately $372 per metric ton.
o The company's guidance for the remainder of the year is based on
currency exchange rates of $1.27 to the euro and $1.86 to sterling,
which benefits guidance for the year by $0.04 per share compared to
previous guidance.
o Commencing with the first quarter of 2006, the company will change
its accounting policy for dry-dock costs from amortizing them over
the time between dry-docks, generally two to three years, to
expensing dry-dock costs as incurred. This change in accounting
principle will reduce full year 2006 earnings per share by
approximately $0.08, including $0.04 per share in the company's
previously released 2006 first quarter, and $0.04 per share over the
balance of the year.
With regard to the revised outlook, Carnival Corporation & plc Chairman
and CEO Micky Arison commented "Although we are disappointed having to lower our
guidance for the year, we believe the fundamentals of our business remain sound
and our long-term strategies position us well to grow our business in 2007 and
beyond."
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 80 ships totaling approximately 139,000
lower berths with 15 new ships scheduled to enter service between June 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.
The company has scheduled a call with analysts for today at 10 a.m. EST
(15.00 London time). This call can be listened to live, and additional
information can be obtained, via Carnival Corporation & plc's website at
www.carnivalcorp.com or www.carnivalplc.com.
# # #
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, fuel costs, costs per available lower berth day, 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 exchange rates and interest rates and fuel, food,
payroll, insurance and security costs; the impact of pending or threatened
litigation; changes in the environmental, health, safety, security, tax and
other regulatory regimes under which Carnival Corporation & plc operates;
continued availability of attractive port destinations; the ability to
successfully implement cost reduction 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.
MEDIA CONTACTS INVESTOR RELATIONS CONTACT
US US/UK
Carnival Corporation & plc Carnival Corporation & plc
Tim Gallagher Beth Roberts
1 305 599 2600, ext. 16000 1 305 406 4832
UK
Brunswick Group
Sophie Fitton/Sarah Lindgreen
44 (0) 20 7404 5959