Hasbro 4Q performance slips, hurt by charges


| Zoom

PAWTUCKET, R.I. (AP) - Hasbro's fourth-quarter net income edged down, a disappointing holiday season hurt by one-time charges and weak sales of its Beyblade spinning top game and Marvel toys.

But the company also boosted its dividend, and its shares rose 5 percent in Monday midday trading.

Investors were also reassured that the weakness was concentrated in the boys area, a unit that is sure to turn around when new movies come out, said Needham & Co. analyst Sean McGowan. A new "Spider-Man" movie is due out in May, a new "Transformers" movie in June and a "Star Wars" movie in 2015.

Pawtucket, R.I.-based Hasbro said Monday that sales of toys in the boys' category dropped 16 percent in the quarter. Preschool sales dipped 1 percent. There was strength in the girls' category, which saw a 19 percent sales increase. Sales of games climbed 2 percent.

The November and December holiday season are key for toy makers, because they can make 40 percent or more of their annual revenue then. But sales of traditional toys have been pressured as children turn more to electronic gadgets like tablets and smartphones.

The company said it had strong growth in its girls brands including My Little Pony and Nerf Rebelle. But boy's toys like Beyblade were weaker.

Last month rival Mattel Inc.'s fourth-quarter results missed analysts' estimates as sales of toys like Barbie and Fisher-Price preschool items dropped.

For the three months that ended Dec. 29, Hasbro earned $129.8 million, or 98 cents per share. That compares with $130.3 million, or 99 cents per share, a year ago.

Excluding restructuring charges, pension costs and product-related charges, as well as a benefit related to a legal settlement, earnings were $1.12 per share. Analysts surveyed by FactSet expected earnings of $1.21 per share.

Revenue for the Pawtucket, R.I., company was basically flat at $1.28 billion. Analysts expected $1.3 billion.

Hasbro said its full-year net income fell 15 percent to $286.2 million, or $2.17 per share, from $336 million, or $2.55 per share, in the previous year. Adjusted earnings were $2.83 per share.

Annual revenue dipped to $4.08 billion from $4.09 billion.

Hasbro also announced Monday that it is raising its quarterly dividend by 8 percent to 43 cents per share from 40 cents. The dividend will be paid May 15 to shareholders of record May 1.

The company's stock rose $2.62, or 5.2 percent, to $52.71 in midday trading. It had fallen 9 percent so far this year.


(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Get Out of Jail Free?
    Why Seattle firefighters won't face felony charges in alleged homeless beating

  • Goats!
    Seattle deploys one of its most popular work crews to clean up the city

  • Buying Season
    Here are four ways to ruin your chances at that new home
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.