MIAMI (AP) - Carnival Corporation, the world's largest cruise operator, said yesterday fiscal fourth-quarter net income fell 14 percent, hurt by higher fuel prices and other expenses, but results beat analyst expectations.

Profit for the quarter ending on November 30 fell to $358 million, or 44 cents per share, from $416 million, or 51 cents per share last year.

Revenue rose 11 percent to $3.12 billion, from $2.81 billion last year.

Analysts polled by Thomson Financial predicted net income of 43 cents per share on revenue of $3.08 billion. Carnival had predicted earnings between 42 cents and 44 cents per share.

The company said stronger pricing on bookings close to the cruise date was partly offset by higher-than-expected fuel costs.

Carnival Chairman and CEO Micky Arison said a continued recovery of Caribbean business led to higher yields for the company's North American brands, while its European brands were bolstered by the stronger euro and British pound.

"Although operating performance for our North American brands was hampered by pricing pressure in the Caribbean early in the year, demand for Caribbean cruises strengthened considerably as the year progressed and we expect this trend to continue into 2008," Mr. Arison said. He also acknowledged that expectations in the Caribbean have been relatively low since Hurricane Katrina.

Mr. Arison said the company did not expect the weak dollar to keep Americans from cruising to Europe.

"Americans can take a European vacation in dollars by going on a cruise," he told analysts and reporters during a conference call. "That's a huge economic advantage for them."

Conversely, Carnival officials said European vacationers' interest in North American cruises would be tempered by tighter US immigration restrictions.

For the fiscal year, net income rose six percent to $2.41 billion, or $2.95 per share, from $2.28 billion, or $2.77 per share last year.

Revenue rose 10 percent to $13.03 billion from $11.84 billion.

In 2008, the company expects higher bookings and will expand capacity overall by about 9 percent, with five new ships mostly in the European market. But Carnival also is bracing for high fuel prices.

The company predicts a profit of $3.10 to $3.30 per share, including 50 cents per share in costs related to higher fuel.

First-quarter profit is expected to be 29 cents to 31 cents per share, down from 35 cents per share a year ago.

Analysts estimate a profit of $3.22 per share for the year and 35 cents per share for the first quarter, because they believe the increased fuel costs have already been taken into account.

Carnival shares dropped 45 cents to $44.36 in midday trading.