Hasbro Reports Second Quarter 2010 Results

• Net revenues of $737.8 million (-7%);
• Net earnings up to $43.6 million (+11%);
• Operating profit to $79.7 million (+9%);
• Operating profit margin of 10.8%.

Hasbro Inc. today reported 2010 second quarter results. The Company reported net earnings of $43.6 million, an increase of $4.4 million or 11%, compared to $39.3 million in 2009. The Company reported net revenues of $737.8 million compared to $792.2 million a year ago, a decrease of 7%.

"We are executing our long-term strategy by re-imagining, re-inventing and re-igniting our global brand portfolio, which in turn is improving profitability in our business," said Brian Goldner, Hasbro President and Chief Executive Officer. "As we stated previously, the second quarter presented challenging revenue comparisons due to the initial movie product ship-ins last year ahead of the TRANSFORMERS and G.I. JOE movies. Having said this, the strength of our brand portfolio and the execution of the team globally enabled us to partially offset this challenging revenue comparison and improve our profitability year-over-year. "We continue to expect our revenues to be more heavily weighted to the second half of the year as our major initiatives are beginning to launch," Goldner continued.

Worldwide net revenues for major product categories grew in two of the four categories. The Games and Puzzles category increased 22% to $262.2 million; the Preschool category grew 32% to $103.5 million; the Girls category was flat at $133.2 million; and, as expected, the Boys product category decreased 34% to $238.8 million.

U.S. and Canada segment net revenues were $444.5 million compared to $490.9 million in 2009. The results reflect growth in the Games & Puzzles, Girls and Preschool categories which was offset by a decline in the Boys category. The U.S. and Canada segment reported an operating profit of $58.7 million compared to $56.3 million in 2009.

International segment net revenues were $261.4 million compared to $276.2 million in 2009. The results reflect growth in the Games & Puzzles and Preschool categories offset by declines in the Boys and Girls product categories. The International segment reported an operating profit of $11.6 million compared to $16.5 million in 2009.

Entertainment and Licensing segment net revenues of $30.5 million increased 26% versus $24.2 million in 2009. The results primarily reflect an increase in movie-related revenue. The Entertainment and Licensing segment reported an operating profit of $13.0 million compared to operating profit of $2.9 million in 2009.