DOW JONES NEWSWIRES
Hasbro Inc.'s (HAS) second-quarter earnings rose 4.8% amid
strong sales of most of its toy brands, including those related to
the Transformers movie sequel, but revenue fell just short of Wall
Street's expectations while profit topped estimates.
Toymakers' sales had slumped in recent quarters as consumers
spend less and a rebound isn't seen anytime soon. For its part,
Hasbro is placing its hopes on toys tied to the smash
"Transformers: Revenge of the Fallen" to boost sales. Much of
Hasbro's recent growth stems from its success featuring its toys in
hit movies as its lineup includes G.I. Joe, Star Wars and
Spider-Man products. A G.I. Joe movie is coming up next month.
Rival Mattel Inc. (MAT) on Friday reported another quarter of
slumping sales, partly attributing it to lack of toys tied to
summer entertainment, though its bottom line benefitted from cost
cuts.
Hasbro reported a profit of $39.3 million, or 26 cents a share,
up from $37.5 million, or 25 cents a share, a year earlier. The
latest period included a 6 cent charge related to its joint venture
with Discovery Communications Inc. (DISCA).
Revenue increased 1% to $792.2 million, but rose 7% in constant
currency.
Analysts polled by Thomson Reuters most recently were looking
for earnings of 23 cents on revenue of $797 million.
Gross margin fell to 59.7% from 60.7%.
In its U.S. and Canadian segment sales rose 4.8%. International
sales declined 9.9%, hurt by foreign currency effects.
Hasbro in April unveiled a pricey joint venture that will give
it shared control with Discovery of a new cable-TV network and Web
site for children based on Hasbro brands and the Discovery Kids
network.
Shares closed at $25.38 on Friday and didn't trade premarket The
stock is down by roughly a third in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com