Carnival Corp. CEO Arnold Donald stated the agreement to construct nine ships at two shipyards in Europe was not to take advantage of the recent decline in the value of the euro against the U.S. dollar.
The euro is at its lowest level against the dollar in 13 years. Any contracts written in dollars would price much less now than in the past unless terms were adjusted in some way for currency movements.
But Donald discounted that motivation. "It was definitely nothing at all to do with currency," he stated in a conference get in touch with with analysts to go over first quarter monetary final results. "These issues just need a lot more forward preparing. It is to our advantage to communicate with the yards and have a longer-term plan since they have a lot of subcontractors, so it provides them the opportunity to program further out and to be much more powerful in lining up those subcontractors.”
The time period covered by the agreement is 2018-22.
Donald also mentioned the order consists of a new ship style that needs extra forward arranging. “It's a prototype. So, once again, we don't have all the particulars but. We have not signed contracts with each of the yards for every of the ships. We'll be happy to share the details when we do that, but it was important for us to get out in front from a organizing standpoint to empower the yards, and to get in front of a new design," he mentioned.
Later in the contact, Donald did say that some of the ships will be purpose-built for China. The two Carnival Corp. brands currently sourcing consumers in China are Costa and Princess.
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