Royal Caribbean has announced better than expected first quarter results and updated guidance for the remainder of 2011. Net income for the first quarter of 2011 was $91.6 million, or $0.42 per share, which is an increase from the first quarter of 2010 when net income was $87.4 million, or $0.40 per share.
In addition, Royal Caribbean reported revenues improved to $1.7 billion in the first quarter of 2011 compared to $1.5 billion in the first quarter of 2010 as a result of capacity increases and yield improvements.
Royal Caribbean Chairman Richard Fain was happy with the results, but mentions world events reduced the possible money that could have been made, "The year started off with a roar — strong bookings, low costs and solid profits — and in the first quarter every one of our brands exceeded its forecast. Unfortunately, the events in Northern Africa and Japan have turned what was shaping up as a spectacular year into merely a very good one. Nonetheless, other than adjustments for fuel pricing, our earnings guidance for the year is essentially intact despite these dramatic geopolitical events. The demand for the majority of our products has remained quite strong and even the impacted itineraries have begun to improve."
Of particular interest are these results from quarter one
- Net income was $91.6 million, or $0.42 per share versus, $87.4 million, or $0.40 per share in 2010. Included in the 2010 results was a one-time gain of $85.6 million, or $0.39 per share related to a legal settlement;
- Net Yields increased 4.0% (2.8% on a Constant-Currency basis);
- Net Cruise Costs per APCD (“NCC”) were up 0.2% (down 0.1% on a Constant-Currency basis);
- Included in Other Income/(Expense) was an $0.11 per share marked-to-market gain on the company’s fuel option portfolio.
You can read the full results here
