Hasbro Reports Third Quarter 2010 Results

• Net revenues increased 3% to $1.31 billion compared to $1.28 billion a year ago;
• Net earnings up 3% year-over-year to $155.2 million, versus $150.4 million a year ago;
• Operating profit of $237.8 million or 18.1% of net revenues, a 3% increase from $230.7 million or 18.0% of net revenues in 2009;
• Revenue grew in the Preschool, Boys and Games & Puzzles categories.

Hasbro Inc. today reported revenue and earnings growth for the third quarter 2010. Third quarter 2010 net revenues grew 3% to $1.31 billion compared to $1.28 billion a year ago. Excluding the negative $16.2 million impact of foreign exchange, net revenues grew 4%. Net earnings grew 3% to $155.2 million, compared to $150.4 million a year ago.

"Innovation across Hasbro's portfolio of world class brands, backed by continued strong execution from our teams globally, drove the third quarter performance," said Brian Goldner, Hasbro President and Chief Executive Officer. "Our unwavering commitment to our strategy of re-imagining, re-inventing and re-igniting Hasbro's global brand portfolio continues to unlock profitability in our business while delivering great toys and games and immersive experiences to consumers. We are well positioned for the holiday season with innovative and fun offerings at all price points for global consumers, supported by comprehensive programs with retailers."

Worldwide net revenues grew in three of the four major product categories. The Preschool category grew 9% to $184.7 million; the Boys product category increased 4% to $472.3 million; and the Games and Puzzles category increased 2% to $387.0 million; while the Girls category declined 1% to $269.1 million.

U.S. and Canada segment net revenues grew 4% to $825.5 million compared to $791.9 million in 2009. The results reflect growth in the Boys, Preschool and Games & Puzzles categories that more than offset a decline in the Girls category. The U.S. and Canada segment reported an operating profit of $158.8 million up 23% compared to $129.1 million in 2009.

International segment net revenues increased 3% to $458.9 million compared to $444.1 million in 2009. Revenues in the International segment grew 7% absent a $17.8 million negative foreign exchange impact. The results reflect growth in the Girls, Preschool and Games & Puzzles categories that more than offset a decline in the Boys category. The International segment operating profit grew 10% to $70.8 million compared to $64.1 million in 2009.

Entertainment and Licensing segment net revenues were $27.5 million compared to $41.6 million in 2009. The results primarily reflect a decline in TRANSFORMERS and G.I. JOE movie-related revenue. The Entertainment and Licensing segment reported an operating profit of $5.9 million compared to $19.8 million in 2009. The Hub, Hasbro's joint venture television network with Discovery Communications, successfully launched on 10-10-10.