Hasbro revenue drops in 1Q

HASBRO INC. WAS the highest ranked Rhode Island headquartered company in the Wall Street Jounral's 2017 Management Top 250. / BLOOMBERG FILE PHOTO/ MICHAEL SPRINGER
HASBRO INC. WAS the highest ranked Rhode Island headquartered company in the Wall Street Jounral's 2017 Management Top 250. / BLOOMBERG FILE PHOTO/ MICHAEL SPRINGER

PAWTUCKET – Revenues for Hasbro Inc. fell 3 percent to $648.9 million in the first quarter of 2012 compared to $672 million for the same period 2011.

First quarter 2012 net revenues include a negative $8.5 million impact of foreign exchange. The net loss for the first quarter was $2.6 million, or $0.02 per diluted share, versus net earnings of $17.2 million, or $0.12 per diluted share, at the same time last year.

First quarter 2012 net earnings were $5.1 million, or $0.04 per diluted share, excluding $11.1 million of severance costs. The company noted that the first quarter 2012 was a 14-week period versus the first quarter 2011 which was a 13-week period.

“We continue to experience good momentum in our international business and positive point-of-sale trends in the U.S. and international markets,” said Brian Goldner, Hasbro’s president and CEO. “We have launched several new initiatives for 2012 which are generating good early results.”

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“In partnership with our retailers and supported by a strong line of new fall initiatives, our expectation remains that a higher percentage of full year revenues will be in the second half of the year versus past years,” added Goldner. “This shift in the timing of our business has a similar impact on profitability,” Goldner said.

U.S. and Canada segment net revenues dropped to $329 million, a decrease of $62.2 million or 16 percent when compared to 2011 numbers. The segment reported an operating profit of $14.4 million, compared to $41.0 million in 2011.

International segment net revenues grew $35.4 million or 14 percent to $289.7 million, compared to $254.3 million in the first quarter of 2011.

Net revenues in the segment grew 17 percent, absent the negative $8.2 million impact of foreign exchange. The segment reported an operating loss of $5.1 million, compared to an operating loss of $1.7 million in 2011.

Entertainment and Licensing segment net revenues increased 19 percent to $29.3 million, compared to $24.6 million in 2011. The segment reported an operating profit of $7.7 million compared to $5.4 million in 2011.

Hasbro’s biggest competitor, El Segundo, Calif.-based Mattel Inc., saw its shares slide 9.1 percent – the biggest drop since July 16, 2010.

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