December 14, 2005
Carnival in $2 billion newbuild deal with Fincantieri
Carnival Corporation & plc (NYSE: CCL; LSE) (NYSE: CUK) today announced it has reached an agreement with Italian shipbuilder Fincantieri for the construction of four new cruise ships worth more than $2 billion.
The agreement calls for the construction of four new vessels, one each for Holland America Line, Carnival Cruise Lines, Princess Cruises and Costa Crociere, along with options for two additional vessels, one each for Carnival Cruise Lines and Holland America Line.
The four new ships will add a collective 11,756 lower berths to the cruise operator's fleet.
Two of the orders have been placed in U.S. dollars and two others are in euros.
According to Carnival Corporation & plc Chairman and CEO Micky Arison, the agreement extends Carnival Corporation & plc's newbuilding program through 2009 while enabling the company to execute its strategy of expanding its North American and European brands.
"Fincantieri constructs some of the world's most beautiful and technically advanced ships and this agreement enables us to expand our core North American and European brands at very competitive prices considering today's unfavorable U.S. dollar/euro ratio," he said.
Including the four new vessels, Carnival Corporation & plc's capacity growth for 2008 and 2009 is now expected to be 8.2 percent and 6.4 percent, respectively. The company's order book now includes 16 new ships, 13 of which are being constructed by Fincantieri.