Hasbro 3rd-quarter profit rises 3 percent

[October 18, 2010]  PAWTUCKET, R.I. (AP) -- Toy maker Hasbro said strength in its preschool toys helped third-quarter net income rise 3 percent and beat expectations.

The strong showing is in contrast to rival Mattel Inc.'s third-quarter results reported on Friday. The maker of Barbie and Hot Wheels' net income rose 23 percent but its revenue missed expectations due to cautious retail ordering and continued weakness at its Fisher Price unit.

Hasbro's report come ahead of the crucial holiday season, when toymakers make up to half of their annual revenue.

The maker of Nerf, Scrabble and Monopoly said Monday net income rose 3 percent to $155.2 million, or $1.09 per share. That compares to $150.4 million, or 99 cents per share, in the year-ago period.

Revenue rose 3 percent to $1.31 billion from $1.28 billion last year.

Sales of preschool toys rose 9 percent while sales of boys toys rose 4 percent. Girls products revenue fell 1 percent.

Analysts expected the Pawtucket, R.I.-based company to report net income of $1.04 per share on revenue of $1.29 billion, according to a survey of analysts by Thomson Reuters.

U.S. and Canada revenue rose 4 percent to $825.5 million from $791.9 million a year ago.

International revenue rose 3 percent.

Entertainment revenue dropped 34 percent to $27.5 million, mainly because sales of Transformers and G.I. Joe-related toys declined from a year ago, when both properties were supported by a new movie.

The company says it will record a charge of about 25 cents to 30 cents in the fourth quarter related to starting up its Hub TV network joint venture.

"We continue to believe we should be able to grow revenues and earnings per share for the full year 2010," said CFO Deborah Thomas.

[Associated Press]

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