News Release

Carnival Corporation & plc Reports First Quarter Earnings

MIAMI, March 24, 2009 /PRNewswire-FirstCall via COMTEX/ -- 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


 
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