Hasbro profits in '08 despite Q4 drop
By Staff -- Gifts and Dec, 2/9/2009 9:19:00 AM
PAWTUCKET, R.I.—Hasbro today reported a 30 percent drop in 2008 fourth quarter earnings en route to what was ultimately a profitable year for the nation’s second largest toymaker.
For the fourth quarter, Hasbro reported net earnings of $93.6 million, or $0.62 per diluted share, down from the $133.7 million or $0.84 per diluted share the company recorded in the corresponding period of 2007.
Net revenue for the quarter dipped 5 percent to $1.2 billion, a figure impacted by $80 million in unfavorable foreign currency exchange rates. Excluding the effects of currency exchange, net revenue increased 1 percent. U.S. and Canada segment net revenues, worth $689.5 million, were down fractionally compared to 2007. International segment net revenues, at $496.8 million, were marginally up absent foreign exchange.
For the year, Hasbro reported net earnings of $306.8 million, or $2.00 per diluted share, down 8 percent from 2007 when earnings were $333 million or $1.97 per diluated share. It was the company's eighth consecutive year of earnings per share growth.
Worldwide net sales for 12-month period were $4.0 billion, a 5 percent gain over 2007’s tally. Annual sales in the U.S. and Canada rose 5 percent while International segment revenues grew 4 percent compared to 2007. The company attributed its 2008 revenue increases to “strong performances” for its Star Wars, Playskool, Nerf, Little Pet Shop and Easy Bake lines, as well as for its board and trading card games.
“In a challenging environment, we delivered both revenue and earnings per share growth in 2008, while also continuing to make investments in our future,” said Brian Goldner, Hasbro’s president and CEO. “As we look to the year ahead, given the severity of the downturn in global economies, we are focused on keeping costs down, managing our operating cash flow and continuing to invest in our business for the long term. That said, we believe the underlying strength of our brands and commitment to our strategy should enable Hasbro to grow revenue and earnings per share in 2009, absent a material deterioration in economic conditions or the value of foreign currencies.”
U.S. and Canada segment net revenues for the year were $2.4 billion, up 5 percent. The U.S. and Canada segment reported an operating profit of $283.2 million, compared to $287.8 million in 2007.
International segment net revenues for the year were $1.5 billion, up 4 percent from 2007. Inclusive of investment spending in emerging markets, the International segment reported an operating profit of $165.2 million compared to $189.8 million in 2007.
We would love your feedback!
-
Hasbro profits in '09 from boys toys, licensing
Feb 8, 2010 -
Hasbro profits despite domestic sales slip
Oct 20, 2009 -
Hasbro’s profits, sales rise in Q2
Jul 20, 2009 -
Hasbro's follows Q2 gains with price jump
Jul 22, 2008 -
Hasbro sees sales, earnings growth in Q3
Oct 20, 2008
VIEW ALL GALLERIES
