Press Release from Hasbro, Inc.
First Quarter Highlights-- Net revenues of $621.3 million compared to $704.2 million a year ago; 2009 revenues include a negative $40.2 million impact from foreign exchange, in constant dollars revenues declined 6%; -- Net earnings of $19.7 million or earnings per diluted share of $0.14 compared to $37.5 million or $0.25 per diluted share a year ago.
PAWTUCKET, R.I. -- Hasbro, Inc. (NYSE: HAS) today reported net earnings of $19.7 million, or $0.14 per diluted share, compared to $37.5 million or $0.25 per diluted share in 2008. The Company reported net revenues of $621.3 million, compared to $704.2 million a year ago. The revenue decrease in constant dollars was 6%, excluding the negative $40.2 million impact of foreign exchange.
"As we communicated earlier this year, we expected revenues to decline in the first quarter due to economic challenges, the impact of foreign exchange and retailers reducing inventory levels," said Brian Goldner, President and Chief Executive Officer.
"To drive momentum in our business in the coming quarters, we have new product initiatives across each of our major product categories including preschool, games, girls and boys, including the highly anticipated theatrical releases of TRANSFORMERS: REVENGE OF THE FALLEN, G.I. JOE: RISE OF COBRA and Marvel's X-MEN ORIGINS: WOLVERINE," Goldner concluded.
U.S. and Canada segment net revenues were $404.5 million, compared to $428.5 million in 2008. The results reflect growth in STAR WARS, PLAYSKOOL, NERF and board games, offset by declines in LITTLEST PET SHOP, TRANSFORMERS and MARVEL brands, although these brands continued to contribute significantly to the segment. The U.S. and Canada segment reported an operating profit of $41.6 million, compared to $37.3 million in 2008.
International segment net revenues were $189.2 million, compared to $248.3 million in 2008. The revenues include a negative foreign exchange impact of approximately $36.1 million. The results reflect declines in TRANSFORMERS, MY LITTLE PONY, ACTION MAN, IN THE NIGHT GARDEN and board games, partially offset by growth in STAR WARS and NERF. Although down year over year, TRANSFORMERS and MARVEL continued to contribute significantly to the segment. The International segment reported an operating loss of $14.5 million compared to operating profit of $13.0 million in 2008.
"Given the revenue headwinds during the first quarter, including foreign exchange, retailer inventory rebalancing and the later Easter, we took a number of measures that were successful in mitigating the impact of the revenue reduction on profitability," said David Hargreaves, Chief Operating Officer and Chief Financial Officer. "Based on the strength of our product line, we believe the two most recent quarters will prove to have been the most challenging for Hasbro in this economic cycle. Our balance sheet is strong and we remain focused on investing in our global business for the long term," Hargreaves concluded.
The Company will webcast its first quarter earnings conference call at 8:30 a.m. Eastern Time today. To listen to the live webcast, go to http://investor.hasbro.com, click on the webcast microphone. The replay will be available on Hasbro's web site approximately 2 hours following completion of the call.
Hasbro, Inc. is a worldwide leader in children's and family leisure time products and services with a rich portfolio of brands and entertainment properties that provides some of the highest quality and most recognizable play and recreational experiences in the world. As a brand-driven, consumer-focused global company, Hasbro brings to market a range of toys, games and licensed products, from traditional to high-tech and digital, under such powerful brand names as TRANSFORMERS, PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, CRANIUM and WIZARDS OF THE COAST. Come see how we inspire play through our brands at www.hasbro.com.