Profits Finally Cruising Upward for Carnival

By Jen Hale | Reporter and weekend anchor
Published: November 2, 2008

In today’s tough economic times, it’s always nice to see some signs of hope and a financial upturn, however small.

Here a story from the Associated Press about Carnival Cruise Lines.

Although the cruise line’s profits are still on the low end for the year, they’re at least inching back up, ever so slowly.

Luxury uses for the ports in Mobile and New Orleans is key to attracting other tourists dollars.

A healthy cruise industry isn’t just important for the publicity it brings these port cities.

Most cruise passengers stay in a hotel and eat out the night before their ship sails - and often the day they return as well.

These cruise ships create a ripple effect in an economy where every penny counts.

Cruise operator Carnival Corp. boosted its
full-year earnings outlook range today on new currency exchange
rates and fuel prices.

Fuel costs have started to come down as the demand for oil
weakens.

Oil prices slipped below $64 a barrel Friday, extending
declines after data showed the U.S. economy contracted in the
latest quarter, reinforcing expectations of a prolonged slump in
demand.

Carnival raised its profit forecast to a range of $2.81 to $2.83
per share, up from a prior prediction for net income between $2.79
and $2.81 per share.

Analysts polled by Thomson Reuters expect full-year net income
of $2.82 per share, on average.

The leisure sector has been pressured as consumers continue to
tighten spending due to the ongoing housing slowdown, diminishing
credit and rising food costs.

Carnival’s stock slid $4.74, or 16.5 percent, to $23.97 in
morning trading. Over the past year, the shares have traded between
$23.53 and $48.25.

Carnival’s Holiday cruise ship sails out of Mobile.