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.
