Hasbro Reports First Quarter Results

Hasbro - April 2009

First Quarter Highlights

Hasbro Inc. today reported net earnings of $19.7 million, compared to $37.5 million in 2008. The Company reported net revenues of $621.3 million, compared to $704.2 million a year ago.

“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 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.

“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,” said David Hargreaves, Chief Operating Officer and Chief Financial Officer.