Hasbro reports second quarter results

• Net revenues of $792.2 million (+1%);
• Net earnings of $39.3 million;
• Operating profit was $73.1 million.

Hasbro Inc. today reported net revenues of $792.2 million, compared to $784.3 million a year ago, an increase of 1%. The Company reported net earnings of $39.3 million compared to $37.5 million in 2008.

“For the remainder of this year, we will continue to invest in our business and closely manage our expenses. While there are challenges in 2009, we believe that the underlying strength of our brands and our commitment to our strategy should enable Hasbro to grow revenue, including the impact of our television investment -- absent a material deterioration in the global economy and the value of foreign currencies,” said Brian Goldner, President and Chief Executive Officer.

U.S. and Canada segment net revenues were $490.9 million, compared to $467.7 million in 2008. The results reflect growth in TRANSFORMERS, G.I. JOE, LITTLEST PET SHOP, NERF, PLAY-DOH, FURREAL FRIENDS and TONKA. The U.S. and Canada segment reported an operating profit of $56.3 million, compared to $43.7 million in 2008.

International segment net revenues were $276.2 million, compared to $293.7 million in 2008. The results reflect growth in TRANSFORMERS, G.I. JOE, LITTLEST PET SHOP, NERF, PLAY-DOH and STAR WARS. The International segment reported an operating profit of $16.5 million compared to operating profit of $14.0 million in 2008.

Entertainment and Licensing segment net revenues were $24.2 million, compared to $21.3 million in 2008. The results reflect increases in TRANSFORMERS, G.I. JOE and NERF. The Entertainment and Licensing segment reported an operating profit of $2.9 million compared to operating profit of $8.0 million in 2008. The 2009 results were impacted by one-time expenses associated with the investment in the joint venture with Discovery Communications. The Entertainment and Licensing segment includes television, movies, lifestyle and digital licensing and on-line entertainment operations.

“Our business performance in 2009 has continued to meet our expectations. Our integration of the joint venture with Discovery Communications is on track and we are very pleased with the favorable interest rates we were able to obtain on our recent long-term financing,” said Deborah Thomas, Chief Financial Officer.