Carnival FY 4Q15 Earnings Call Notes

Carnival’s (CCL) CEO Arnold Donald on Q4 2015 Results

Don’t see any reason to change our fuel hedging strategies

“but so far, with forward pricing, we haven’t seen an opportunity to do anything that we think makes sense. Obviously, nobody really knows, as is evidenced by what happened the last couple of years. But we constantly review it. But at this time, we see no reason to do anything different.’

Excited about China

“I think, first of all, as you are well aware, there are over 100 million outbound tourists in China already and today, cruise is capturing less than a million of those tourists and that number is going to grow dramatically in terms of the total number of outbound tourists and the fit for cruise is far greater than, less than 1%. So there’s plenty of demand.”

“so we are very excited about China. It is today only 5% of our capacity. There may be discontinuities at times as you try to get distribution lined up with that pent up demand, but it’s all, from our perspective, very manageable. But a very great market, a strong future market, a contributing market today to the bottom line and to our whole approach on developing relative scarcity around the world.”

David Bernstein

What happens to fuel and currency will have a big impact on profits

“And really the fourth is fuel and currency. I mean, if you’ve got a crystal ball that we could use, I would love to have it, but I will tell you, we take the current spot price of fuel and the current currency rates and we bake them in and they do change.’