Fuel costs weigh on Carnival's 2Q net income

By the Associated Press | June 21, 2011 | 9:44 AM EDT

MIAMI (AP) — Carnival Corp.'s second-quarter net income dropped 18 percent as the cruise operator dealt with escalating fuel costs, unrest in the Middle East and North Africa and the aftermath of Japan's earthquake and nuclear disaster.

The Miami company also cut its full-year earnings guidance Tuesday.

Carnival earned $206 million, or 26 cents per share, for the period ended May 31. That's down from $252 million, or 32 cents per share, a year earlier.

Analysts forecast earnings of 23 cents per share.

Revenue rose 11 percent to $3.62 billion, besting Wall Street's estimate of $3.51 billion.

Carnival now expects 2011 earnings of $2.40 to $2.50 per share. It anticipates third-quarter earnings of $1.60 to $1.64 per share.

Analysts predict full-year earnings of $2.54 per share and third-quarter earnings of $1.74 per share.