Carnival's adjusted profit forecast falls below market estimates

[NEW YORK] Carnival Corp, the world's largest cruise operator, forecast an adjusted profit below market estimates for the current quarter, blaming increased competition in the Caribbean.

Shares of the company, which operates the Carnival, Holland America and Costa cruise lines, fell as much as 3 per cent. "The North American brands are ahead on price, but are still behind on occupancy as a result of the large increase in industry capacity in the Caribbean," chief financial officer David Bernstein said.

Carnival forecast an adjusted profit of US$1.38-US$1.44 per share for the third quarter ending Aug 31, when the company usually earns a lion's share of its earnings due to peaking demand in the summer.