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Hasbro profits in '09 from boys toys, licensing

By Staff -- Gifts and Dec, 2/8/2010 10:22:00 AM

Hasbro scored in 2009 with toys from home-grown boys properties like Transformers 2 PAWTUCKET, R.I.—Helped by gains in fourth quarter sales and licensing revenue, Hasbro today reported a 22 percent jump in profit for 2009.

For 2009’s fourth quarter, the toymaker reported net revenues of $1.38 billion, an increase of $144.1 million or 12 percent, compared to the $1.23 billion it tallied a year ago. 2009 fourth quarter revenues grew 7 percent excluding a $55.4 million positive impact of foreign exchange. Net earnings for the quarter were worth $165.6 million or $1.09 per diluted share, an increase of $72.0 million or 77 percent, compared to $93.6 million or $0.62 per diluted share in 2008.

For the full year 2009, Hasbro reported revenues of $4.07 billion, an increase of $46.4 million or 1 percent, compared to $4.02 billion a year ago. 2009 revenues grew 3 percent excluding a $65.2 million negative impact of foreign exchange. Net earnings for the 12 month period were $374.9 million, or $2.48 per diluted share, an increase of $68.1 million or 22 percent from $306.8 million or $2.00 per diluted share in 2008.

“We are extremely pleased with our fourth quarter and full-year results that demonstrate Hasbro’s strategy is working,” said Brian Goldner, Hasbro’s president and CEO. “The Hasbro teams around the globe performed at a high level in 2009, delivering innovation and strong marketing programs to our consumers and retailers. The result is our fifth consecutive year of revenue growth and ninth consecutive year of E.P.S. growth, achieved in a challenging global economy. Continued investments in our business, including the joint venture with Discovery Communications to form The Hub television network, the creation of Hasbro Studios, establishing a local presence in emerging geographies and securing long-term key licenses, position us not only for the success we had in 2009 but over the long term as we execute our branded play strategy globally.”

For the full year 2009, the company’s Boys product category grew 9 percent to $1.47 billion; the Games and Puzzles category increased incrementally to $1.34 billion; the Girls category declined 5 percent to $790.8 million; and the Preschool category was down 1 percent to $451.4 million.

U.S. and Canada segment net revenues were $2.45 billion, an increase of $41.2 million or 2 percent, compared to $2.41 billion in 2008. The results reflect “strong” performances in the Boys and Preschool categories, partially offset by declines in Girls and the Games and Puzzles categories. The U.S. and Canada segment reported an operating profit of $380.6 million compared to $283.2 million in 2008.

International segment net revenues were $1.46 billion, a decrease of $39.9 million or 3 percent, compared to $1.50 billion in 2008. Absent the negative $64.5 million impact of foreign exchange, International segment net revenues increased 2 percent from 2008. Revenue in the International segment reflects growth in the Boys category offset by declines in Preschool, Girls, as well as the Games and Puzzles categories. The International segment reported an operating profit of $162.2 million compared to $165.2 million in 2008.

Entertainment and Licensing segment net revenues were $155.0 million, an increase of $47.1 million or 44 percent, compared to $107.9 million in 2008. Revenue in the Entertainment and Licensing segment reflects growth in lifestyle licensing and digital gaming. The Entertainment and Licensing segment reported an operating profit of $65.6 million compared to $51.0 million in 2008.

“As we continue to execute our strategy to re-imagine, re-invent and re-ignite our global core brands, we believe we should be able to grow revenues and earnings per share for the full year 2010, including the dilution from our television investments and absent a deterioration in consumer spending, global economic conditions or the value of foreign currencies,” said Goldner.

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