Carnival Corp announced non-GAAP net income of $1.1 billion, or
$1.38 diluted EPS for the third quarter of 2013 compared to non-GAAP net
income for the third quarter of 2012 of $1.2 billion, or $1.53 diluted EPS.
For the third quarter of 2013, reported U.S. GAAP net income, which included
impairments of $203 million partially offset by unrealized gains on fuel
derivatives of $64 million, was $934 million, or $1.20 diluted EPS. For the
third quarter of 2012, reported U.S. GAAP net income, which included
unrealized gains on fuel derivatives of $136 million, was $1.3 billion, or
$1.71 diluted EPS. Revenues for the third quarter of 2013 were $4.7 billion,
in line with the prior year.

Third quarter non-GAAP earnings were better than anticipated in the company’s
June guidance due to lower than expected unit costs, partly due to the timing
of advertising expenses.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald
noted that during the third quarter, the company made significant progress on
a number of strategic initiatives to broaden its customer base, spur
additional demand and mitigate environmental impacts and higher fuel costs.

“Asia is a key focus of our international expansion. During the third quarter,
we opened five additional sales offices in China, following the establishment
of a corporate office in Singapore earlier this year,” said Donald. He added
that Princess Cruises recently announced plans to homeport Sapphire Princess
in China for a four-month season beginning in May 2014, bringing the total to
five vessels in the region next year dedicated to guests sourced from Asia.

Earlier this month, the company announced it had received the support of the
U.S. Environmental Protection Agency, the U.S. Coast Guard and Transport
Canada to implement a leading edge “scrubber” technology designed to reduce
air emissions on 32 ships. “The company has been a partner in the development
of the scrubber technology and will take the lead in further refining both the
scrubber design and installation process over the next few years. In addition
to exceeding stricter air emission standards, this technology will help us
mitigate escalating fuel costs,” said Donald.

Key metrics for the third quarter 2013 compared to the prior year were as
follows:

o Third quarter U.S. GAAP net income included $176 million of impairment
charges related to two smaller Costa ships which are intended to be laid
up or sold, and $27 million of impairment charges related to Ibero
trademarks and other items.
o On a constant dollar basis, net revenue yields (net revenue per available
lower berth day or “ALBD”) decreased 3.8 percent for 3Q 2013, which was in
line with June guidance of down 3.5 to 4.5 percent. A continued
improvement in net revenue yields for Costa partially offset lower net
revenue yields for the North American and Northern European brands in the
third quarter. Gross revenue yields decreased 2 percent in current
dollars.
o Excluding fuel and impairments, net cruise costs per ALBD increased 4.6
percent in constant dollars, the majority of which is due to higher
pension plan contributions as well as costs associated with the previously
announced vessel enhancement initiatives and the timing of dry-dock costs,
which was better than June guidance of up 8.5 to 9.5 percent. Gross cruise
costs including fuel and impairments per ALBD in current dollars increased
8.5 percent.
o Fuel prices increased 2.3 percent to $674 per metric ton for 3Q 2013 from
$659 per metric ton in 3Q 2012.
o Fuel consumption per ALBD decreased 5.2 percent in 3Q 2013 compared to the
prior year.