Carnival Names New CEO, Earns on Cruise Bookings
Cruise operator Carnival Corp. said Chief Executive Micky Arison, who has been in charge since 1979, will be replaced by board member Arnold Donald, as the company continues to struggle with a series of mishaps that have hurt bookings.
The company, whose shares rose 2.8 percent in early trading, said Donald will take over as CEO on July 3. Arison will continue to serve as chairman.
Carnival, which operates the Carnival, Holland America and Costa cruise lines, also reported a second-quarter profit that beat analyst estimates, helped by lower fuel prices.
However, the company said bookings and prices for the rest of the year were lower than last year.
Recent mishaps that have hurt the company's reputation include an engine fire aboard the Carnival Triumph that left the ship adrift for days in the Gulf of Mexico. This follows the sinking of the Costa Concordia off the coast of Italy last year.
Carnival reaffirmed its full-year profit forecast of $1.45 to $1.65 per share on Tuesday. The company has cut its full-year earnings outlook twice this year.
Analysts on average were expecting earnings of $1.60 per share, according to Thomson Reuters I/B/E/S.
(Read More: Cruise Inc: Big Money on the High Seas)
Carnival said its net income rose to $41 million, or 5 cents per share, from $14 million, or 2 cents per share, a year earlier. Excluding items, the company earned 9 cents per share.
Revenue fell 2 percent to $3.48 billion in the second quarter.
Analysts had forecast earnings of 6 cents per share on revenue of $3.55 billion.
Fuel prices decreased 9.7 percent to $683 per metric ton from a year earlier, Carnival said.
Carnival's shares rose to $34.15 in early trading on the New York Stock Exchange on Tuesday. (Click here for the latest quote on Carnival.)