Hasbro profits fall following "challenging" Christmas

Net earnings reach $336 million in 2012, down from $385.4 million in 2011.
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Hasbro reported a slight drop in overall revenues and profit for its 2012 financial year, as expected.

It said the holiday season was "challenging" in certain territories.

Net revenues for the full-year 2012 were $4.09 billion, compared to $4.29 billion in 2011, while net earnings were $336 million, down year-on-year from $385.4 million in 2011.

However, for shareholders, Hasbro's Board of Directors raised the quarterly dividend by 11 per cent, to $0.40 per share.

For the fourth quarter 2012, Hasbro reported net revenues of $1.28 billion, compared to $1.33 billion in 2011. Net earnings dropped year-on-year from $139.1 million to $130.3 million.

"In 2012, we achieved many important objectives for the year, including improving the US and Canada segment operating profit margin to 15.1 per cent, growing our Games and Girls categories and driving 16 per cent revenue growth in the emerging markets while improving profitability," said Brian Goldner, Hasbro's President and Chief Executive Officer. 

"We did, however, face difficult year-over-year comparisons and a challenging holiday season in certain geographies."

"We also began an important next step in realising our full potential as brand builders, with the implementation of a cost savings initiative designed to better align resources and costs while delivering $100 million in annual savings by 2015," continued Goldner.

"Hasbro remains in a strong financial position," added Deborah Thomas, Hasbro's Chief Financial Officer. "We are taking the steps we believe necessary to lower our cost base and better align our resources behind our greatest long-term opportunities. 

"Our ability to raise the dividend for the ninth time in ten years is based on the confidence we have in the long-term prospects for Hasbro."

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