12/20/2011 11:04 EST | Updated 02/19/2012 05:12 EST

Carnival's 4th-quarter profit and outlook slump with fuel costs rising

MIAMI - Carnival is reporting that net income dropped 13 per cent in the fourth quarter as rising fuel costs stung the cruise ship company.

The company also issued a first-quarter outlook that is likely to disappoint investors, again because of fuel costs.

Carnival reported Tuesday that it earned $217 million, or 28 cents per share, in the quarter compared with $248 million, or 31 cents per share, a year earlier.

Revenue for the three months ended Nov. 30 climbed 6 per cent to $3.7 billion from $3.5 billion. That fell just short of expectations.

Fuel prices rose 39 per cent to $680 per metric ton in the quarter.

For the first quarter, Carnival Corp., based in Miami, predicts adjusted earnings of 6 to 10 cents per share. Analysts had expected 13 cents per share.