The maker of Nerf toys said Friday demand
during the holiday season was weaker than expected in the US and
announced a 10 per cent reduction in its workforce.
"Consumer demand through much of the holiday season was less than anticipated in both the US and certain international markets," said chief executive Brian Goldner said. "As a result, fourth-quarter revenues did not meet our expectations."
Hasbro said revenue for 2012 was about 4.09 billion dollars, a 4.7 per cent decline from 2011 and less than analysts' average estimate of 4.21 billion dollars, Bloomberg said. The results imply fourth-quarter revenue of about 1.28 billion dollars, about 130 million dollars lower than analysts' estimates, according to Bloomberg.
In addition to the layoffs the Pawtucket, Rhode Island-based company will consolidate facilities and improve some processes to save 20 million to 30 million dollars, the company said.
Hasbro, which in addition to Nerf toys makes the games Monopoly and Trivial Pursuit, is scheduled to report full fourth-quarter results on February 7. Its biggest competitor is Mattel, known for its Barbie dolls and Hotwheels toy cars.
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