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Hasbro Posts Unexpected Q2 Profit
Monday, July 22, 2002
PAWTUCKET, R.I. — Toymaker Hasbro Inc. (HAS) Monday posted a profit before a one-time charge, instead of the loss expected by Wall Street, due to higher sales and cost cuts.
The maker of Mr. Potato Head, GI Joe action figures and Tonka Trucks said its second-quarter net loss, including a charge to write down the value of its stake in Infogames Entertainment SA, widened to $25.9 million, or 15 cents per share, from $18.3 million, or 11 cents, a year earlier.
Excluding the charge, Hasbro earned 2 cents a share in the latest quarter. Analysts surveyed by Thomson First Call expected a loss ranging from 4 cents to 9 cents for an average of 6 cents.
The company, ranked second in the United States behind Mattel Inc., also booked a $245.7 million charge, retroactive to the start of the year, to write off goodwill for several acquisitions in its U.S. toys segment.
Net revenues rose 7 percent to $546 million from $511 million. U.S. toy sales were up 18 percent, led by a strong performance by its Transformers, G.I. Joe, Star Wars, Playskool, Nerf and Zoids lines, the company said.
With the retroactive charge, Hasbro's year-to-date net loss widened to $288.7 million, or $1.67 a share, from $43.4 million, or 25 cents, a year earlier.
New accounting rules that took effect this year require companies to take a charge if goodwill -- the difference between the price of an acquisition and the fair value of its assets -- has dropped.
Hasbro received 2.9 million shares in Infogames when the French video game publisher bought Hasbro's Interactive and Games.com units in January 2001.
Shares of Hasbro were up 28 cents at $11.97 in morning New York Stock Exchange trade. The stock fell about 14 percent over the second quarter, while Mattel shares rose 2 percent.
From www.foxnews.com
Monday, July 22, 2002
PAWTUCKET, R.I. — Toymaker Hasbro Inc. (HAS) Monday posted a profit before a one-time charge, instead of the loss expected by Wall Street, due to higher sales and cost cuts.
The maker of Mr. Potato Head, GI Joe action figures and Tonka Trucks said its second-quarter net loss, including a charge to write down the value of its stake in Infogames Entertainment SA, widened to $25.9 million, or 15 cents per share, from $18.3 million, or 11 cents, a year earlier.
Excluding the charge, Hasbro earned 2 cents a share in the latest quarter. Analysts surveyed by Thomson First Call expected a loss ranging from 4 cents to 9 cents for an average of 6 cents.
The company, ranked second in the United States behind Mattel Inc., also booked a $245.7 million charge, retroactive to the start of the year, to write off goodwill for several acquisitions in its U.S. toys segment.
Net revenues rose 7 percent to $546 million from $511 million. U.S. toy sales were up 18 percent, led by a strong performance by its Transformers, G.I. Joe, Star Wars, Playskool, Nerf and Zoids lines, the company said.
With the retroactive charge, Hasbro's year-to-date net loss widened to $288.7 million, or $1.67 a share, from $43.4 million, or 25 cents, a year earlier.
New accounting rules that took effect this year require companies to take a charge if goodwill -- the difference between the price of an acquisition and the fair value of its assets -- has dropped.
Hasbro received 2.9 million shares in Infogames when the French video game publisher bought Hasbro's Interactive and Games.com units in January 2001.
Shares of Hasbro were up 28 cents at $11.97 in morning New York Stock Exchange trade. The stock fell about 14 percent over the second quarter, while Mattel shares rose 2 percent.
From www.foxnews.com
