Hasbro Reports First Quarter 2010 Results

First Quarter Highlights:

• Net revenues of $672.4 million for the first quarter 2010, an increase of $51.0 million or 8% compared to $621.3 million a year ago;
• Net earnings of $58.9 million, an increase of $39.2 million compared to $19.7 million in 2009;
• Net revenues grew in all major product categories in the first quarter 2010;

Hasbro Inc. today reported 2010 first quarter results. The Company reported net revenues of $672.4 million, an increase of $51.0 million or 8%, compared to $621.3 million a year ago. The Company reported net earnings for the quarter of $58.9 million, an increase of $39.2 million compared to $19.7 million in 2009.

"The Hasbro teams globally continued to execute our strategy well and delivered a strong first quarter performance," said Brian Goldner, President and Chief Executive Officer. "We began the year with positive consumer spending trends, but recognize we face challenging comparisons in the second quarter given the initial movie product ship-ins last year in anticipation of the TRANSFORMERS and G.I. JOE movies. As we stated in February, we continue to 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 further deterioration in the value of foreign currencies, consumer spending, or global economic conditions."

Worldwide net revenues for all major product categories grew in the first quarter 2010. The Boys product category increased 3% to $236.9 million; the Games and Puzzles category increased 7% to $227.0 million; the Girls category increased 16% to $129.4 million; and the Preschool category grew 18% to $78.9 million.

U.S. and Canada segment net revenues were $424.7 million, an increase of $20.2 million or 5%, compared to $404.5 million in 2009. The results reflect growth in Games & Puzzles, Girls and the Preschool category which offset a decline in the Boys category. The U.S. and Canada segment reported an operating profit of $61.1 million compared to $41.6 million in 2009.

International segment net revenues were $221.7 million, an increase of $32.5 million or 17%, compared to $189.2 million in 2009. Revenue in the International segment reflects growth in all major product categories. The International segment reported an operating loss of $2.4 million compared to an operating loss of $14.5 million in 2009.

Entertainment and Licensing segment net revenues were $25.1 million compared to $27.2 million in 2009. Revenue in the Entertainment and Licensing segment reflects lower licensing revenue in digital gaming. The Entertainment and Licensing segment reported an operating profit of $9.4 million compared to $13.6 million in 2009.