Carnival: cost containment efforts offset effects of difficult 2009

By Jennifer Lanning Drey

Portland, Ore., Dec. 18 - Carnival Corp. & plc's chief financial officer, David Bernstein, said Friday that the company's cost-containment initiatives offset pressure on revenue yields in fiscal 2009, which he called "the most challenging economic environment in the company's history."

Speaking during the company's earnings conference call, Bernstein said full-year 2009 revenue yields were negatively impacted by travel restrictions to Mexico due to the flu virus and pressure on onboard revenue yields as a result of the ongoing recession.

The company achieved $170 million of savings since the start of the year through global cost containment initiatives, according to its earnings release.

Carnival's revenues were $3.2 billion for the fourth quarter ended Nov. 30, compared to revenues of $3.3 billion in the same period of 2008. Revenues for the full-year fiscal 2009 were $13.2 billion, compared to $14.6 billion for the prior fiscal year.

During the fourth quarter, Carnival placed its first new ship order in two year, demonstrating its continued confidence in the industry, the company said in its earnings release.

The company said it expects a 2% to 3% increase in net revenue yields on a current dollar basis for full-year 2010 as a result of favorable movements in currency exchange rates. On a constant dollar basis, the company expects full-year net revenue yields to be flat to up slightly.

Carnival is a cruise operator based in Miami.

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