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Price Cuts And Earnings Slowdown Leave Carnival In Troubled Waters.(A)(COMPANY IN THE NEWS)

Investor's Business Daily

| May 02, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Marilyn Alva

Cruise operators have been seasick for more than a year,what with all the fire-sale prices they've had to offer just to keep their ships filled with passengers.

Carnival Corp. can tell you all about it. With 44 ships carrying nearly 3 million passengers annually, it's the world's largest cruise company.

See company chart on Page A7

But Carnival's 15-year streak of positive earnings growth went overboard last year. Earnings in 2000 fell 1% from a year earlier to $1.64 a share. This year's first quarter showed further declines, with earnings down 21% from a year ago.

"It's a great company in a difficult environment," said analyst James Winchester of Lazard Freres & Co.

Troubles At Sea

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