Carnival Corporation & plc announced non-GAAP net income of $2 million, or $0.00 diluted EPS for the first quarter of 2014 compared to non-GAAP net income for the first quarter of 2013 of $67 million, or $0.08 diluted EPS. For the first quarter of 2014, U.S. GAAP net loss, which included net unrealized losses on fuel derivatives of $17 million, was $15 million, or $0.02 diluted loss per share. For the first quarter of 2013, U.S. GAAP net income was $37 million, or $0.05 diluted earnings per share. Revenues for the first quarter of 2014 were $3.6 billion in line with the prior year.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted that first quarter non-GAAP earnings were better than anticipated in the company’s December guidance due to better than expected ticket prices for Carnival Cruise Lines and our continental European brands, as well as the timing of certain expenses.

Donald noted, “We see progress with our continental European brands and continue to be pleased with Carnival Cruise Lines’ pace of improvement. Exciting product innovations and strategic marketing initiatives at Carnival Cruise Lines have driven strong close-in demand resulting in sequential improvement in year-over-year quarterly ticket prices for the brand.” During the quarter, Carnival Cruise Lines announced an exclusive partnership with Dr. Seuss Enterprises to bring the beloved children’s brand and favorite characters to its fleet and the Carnival LIVE Concert Series, which brings the best in live music to the seas with a diverse roster of popular music artists including Jennifer Hudson, Lady Antebellum and Jewel. These brand building initiatives complement the continued roll-out of its Fun Ship 2.0 product enhancement program, as well as ongoing travel agent outreach and the unprecedented Great Vacation Guarantee. In addition, Carnival Cruise Lines was the national cruise line advertiser of the Sochi 2014 Olympic Winter Games, with its creative “Bobslide” campaign which targeted the family segment and furthered the brand’s new marketing campaign launched last fall.

Key metrics for the first quarter 2014 compared to first quarter 2013 and December guidance were as follows:

* On a constant dollar basis, net revenue yields (net revenue per available lower berth day or “ALBD”) decreased 2.1 percent for 1Q 2014. Gross revenue yields decreased 1.9 percent in current dollars.

* Net cruise costs excluding fuel per ALBD increased 3.3 percent in constant dollars driven by higher advertising spend. Costs were better than December guidance, up 4.5 to 5.5 percent primarily due to the timing of certain expenses. Gross cruise costs including fuel per ALBD in current dollars were flat.

* Fuel prices declined 3.4 percent to $654 per metric ton for 1Q 2014 from $677 per metric ton in 1Q 2013 but were higher than December guidance of $643 per metric ton.

* Fuel consumption per ALBD decreased 4.8 percent in 1Q 2014 compared to the prior year.

from Carnival