Carnival (CCL) Warns on Second Half Outlook Amid Conflicts in ME, Africa, Japan Disasters, Rising Fuel Prices

Carnival (NYSE: CCL) expects the revised impact from the prolonged conflicts in the Middle East and North Africa region, as well as the earthquake and nuclear disaster in Japan, which combined resulted in over 300 deployment changes, will cost the company an additional $0.15 per share for the second half of 2011. In addition, the increases in fuel prices net of currency exchange rates will cost the company approximately $0.05 per share in the second half of the year.

In its March guidance, the company underestimated the full impact of these events on its second half earnings.

The company has also experienced softness in bookings for the Southern Europe and UK markets, which will result in reduced revenues costing an additional $0.05 per share for the second half of 2011. However, the company expects to offset the effect of this $0.05 per share in other cost areas of the business. Revenue performance for the North American brands remains strong and the company continues to expect sequential improvement in the second half of the year.

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