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$CCL 2Q15 Call – Arnold, CEO: A series of investments in product innovation, travel agent engagement, and marketing have delivered and the brand continues to outperform. The power of our diversified portfolio overcame the continental European brand challenges for macroeconomic and geopolitical uncertainties.
$CCL $CUK said it will launch four new cruise ships in 2018 across 4 of its 10 leading global brands - Carnival Cruise Line, Holland America Line, Seabourn, and AIDA Cruises, the leading cruise brand in Germany. This is part of its ongoing fleet enhancement strategy with 18 new ships scheduled for delivery between 2018 and 2022.
The performance of $CCL’s North American brands was flat in 4Q17, while the EAA brands registered a 3.5% gain, according to the company. Carnival expects capacity to expand 2.2% in the first quarter of 2018 and 1.3% in Q2. Further, capacity is seen rising 1.7% in third quarter and 2.6% in 4Q18. Full-year capex is estimated at $4.4Bil.
$CCL said it expects a marked improvement in booking volumes and pricing in fiscal 2018, compared to 2017. The company is targeting total cost savings of $80MM for 2018, when net capacity is expected to grow 2%. In fiscal 2017, Carnival launched three advanced cruise ships for operation, and ordered for the first ship to be built in China.
With unfavorable fuel prices and currency exchange rates dragging profit, $CCL is looking for adjusted earnings between $0.37 per share and $0.41 per share for 1Q18. Net revenue yields are forecasted to grow in the 1.5-2.5% range in the first quarter, and adjusted net cruise costs in the range of 2% to 3%.
$CCL said it expects net revenue yields to rise 2.5% YoY in FY18, with a projected increase of 1% in net cruise costs, excluding fuel per ALBD. Full-year net income is forecasted to be in the range of $4-$4.30 per share. The company sees fuel costs increasing by about $117MM in 2018, compared to the previous year.
Cruise line operator $CCL reported a 10% fall in 4Q17 profit, owing to higher costs and voyage disruptions caused by hurricanes. Earnings per share dipped to $0.76 from $0.83 in the year-ago quarter. Adjusted for special items, earnings decreased 6% to $0.63 per share. Revenues moved up 8% to $4.3Bil, helped by higher demand for cruise services.
$CCL has announced a 12% increase in its quarterly dividend to $0.45 per share from the previous dividend amount of $0.40 per share. The board approved a record date for the quarterly dividend of November 24, 2017 with a payment date of December 15, 2017.
$CCL said its charter activity is strong in China. The company had expected to see yield decline, but China proved to be profitable, as occupancy levels were high. "Chartering for next year at this point is in process, but solid. We don’t see any consternation around occupancy for next year," the company said.
Cruise company $CCL reported 8% increase in revenue in 3Q17 to $5.5Bil. However, weighed down by higher expenses, the company reported net income of $1.3Bil, or $1.83 per share, lower than $1.4Bil, or $1.93 per share a year ago. Adjusted net income, meanwhile, rose to $2.29 per share from $1.92 per share in 3Q16.
$CCL announced a new multi-year preferred supplier partnership with Signature Travel Network. Carnival joins its North American sister brands Princess Cruises, Holland America Line, Cunard, and Seabourn as part of the World's Leading Cruise Lines preferred supplier team with Signature.