Hasbro Inc. (NASDAQ: HAS) today reported financial results for the
second quarter 2012. Net revenues for the quarter were $811.5 million, a
decrease of 11%, compared to $908.5 million in 2011. Second quarter 2012
net revenues declined 7% excluding a negative $34.4 million impact of
foreign exchange. Net earnings for the second quarter 2012 were $43.4
million, or $0.33 per diluted share, versus $58.1 million, or $0.42 per
diluted share, in 2011. Second quarter 2011 net earnings include a
favorable tax adjustment of $20.5 million, or $0.15 per diluted share,
and pre-tax expense of $13.1 million, or $0.06 per diluted share,
related to costs associated with establishing Hasbro's Gaming Center of
Excellence. Absent these items, second quarter 2011 net earnings were
$46.0 million or $0.33 per share.
"2012 continues to develop in line with our expectations as we shift more of our shipments later in the year while improving profitability in the near term," said Brian Goldner, President and Chief Executive Officer. "In the U.S. and Canada, we have gained share and the teams are focused on returning to historical levels of operating profit as well as partnering with U.S. retailers to shift shipments closer to the peak consumer demand periods in the third and fourth quarters. Internationally, we continue our global expansion, leveraging investments in emerging markets, product innovation and entertainment to drive Hasbro brands globally. Finally, our television strategy is delivering growth within our Entertainment and Licensing segment and creating demand for our toys and games in global markets."
"As we enter the second half of the year, we have innovative brand initiatives across product categories and geographies," continued Goldner. "For the full year 2012, we continue to believe, absent the impact of foreign exchange, we will again grow revenues and earnings per share. As we have previously stated, we expect 2-4% more of our full-year revenues to occur in the second half of the year. Within this revenue shift, we also expect the fourth quarter to be greater than the third quarter in both revenues and earnings per share, similar to our historical international results."
"An important element of our full-year plan is returning the U.S. and Canada segment to historical levels of operating profit margin. In the second quarter, this segment's profitability, and Hasbro's overall profitability, improved through favorable product mix and higher quality inventory in the U.S. and Canada segment versus last year," said Deborah Thomas, Chief Financial Officer. "As we enter the second half of 2012, Hasbro is in a strong financial position with healthy cash flow and great initiatives for the holidays. A year ago, we made an investment in Games, establishing Hasbro's Gaming Center of Excellence. One year later we believe we are well positioned with innovative gaming products and strong marketing programs for the holiday season."
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