Rising fuel and dry-dock costs cut into the fourth quarter net income of cruise ship line Carnival Corp. For the quarter ending Nov. 30, Santa Clarita-based Carnival’s net income was $358 million, or $0.44 per diluted share, on revenues of $3.1 billion. That is a 14 percent drop from the net income of $416 million, or $0.51 per diluted share, on revenues of $2.8 billion for the fourth quarter 2006. The company also reported record net income for the full year ended Nov. 30 of $2.4 billion, or $2.95 per diluted share, on revenues of $13 billion compared to net income of $2.3 billion, or $2.77 per diluted share, on revenues of $11.8 billion for the prior year. The company’s guidance on fuel costs was off by $9 million for the fourth quarter. Fuel increased to $433 per metric ton, a substantial increase from the $315 per metric ton for the fourth quarter 2006. The guidance had been $421 per metric ton. Earnings are expected to drop in the first quarter 2008 due to rising fuel prices, the company stated.
Fuel, Dry-Dock Costs Sink Carnival’s Net Income