The Energon Pub

[First Gen]

We gave you the heads up on Friday, and now here it is. HASBRO, Inc. (HAS NYSE) has reported its 3rd quarter earnings this morning via webcast.

Heres the scoop:
Highlights
-- Net revenues of $1.3 billion for the quarter, an increase of $78.9 million or 6% from a year ago, or an increase of 5% absent the impact of foreign exchange;
-- Net earnings of $138.2 million, or $0.89 per diluted share, compared to $132.0 million or $0.78 per diluted share excluding the impact of a favorable tax adjustment of $29.6 million or $0.17 per diluted share in 2007;
-- U.S. and Canada segment net revenues up 6% for the quarter and International segment net revenues up 9% for the quarter, or 4% excluding the impact of foreign exchange;
-- Boys, Girls, Preschool and Games up globally compared to a year ago, with growth driven by strong performances from STAR WARS, PLAYSKOOL, FURREAL FRIENDS, LITTLEST PET SHOP, NERF, BABY ALIVE, and in both board and trading card games;
-- Balance sheet remains strong, with operating cash flow of $579.0 million over the last 12 months.


"We are very pleased with our third quarter and year-to-date performance," said Brian Goldner, President and Chief Executive Officer. "In a challenging environment, we delivered both revenue and earnings growth. As we look to the remainder of the year, we are well positioned with the richest and most diversified portfolio of brands in the industry."

The actual duration of the webcast was an hour long. In the webcast we do get to hear a positive introduction to the report by CEO Brian Goldner, who also told us that he's seen raw footage of Tranformers: Revenge of the Fallen and is very pleased. He also stated that the Transformers brand continues to be a strong point in the company despite this being an "non movie year" and that the Transformers Animated line has really pushed the brand.

Unfortunately the company has been affected by the recent economic stresses on the global market with profits down nearly 15% from last year. This was expected by the company as increases in costs for production and in costs of discretionary spending went up during the quarter. Key market brands by HASBRO are still going strong with high gains occuring in the board game department. It was stated by Mr. Goldner that this is because more families are electing to stay home instead of going out for whatever reason.

The webcast ended with some in depth Q&A from investors to Mr. Goldner and David Hargreaves, Chief Operating Officer and Chief Financial Officer. Investors and future investors would do well to listen to that portion.

To view the official press release of today's report, click here, to listen to the webcast, click here

At the time of posting, HASBRO shares were $27.80, or down $2.72 (7.76%).

[dr_n00b]

If they're doing so good, why'd they bump prices by 10%? greedy bastards.

[Sledge]

You joined to say that? I can see you're going to be invaluable to the community. INVALUABLE, I say. Try reading it again, noting the parts about profits being down on last year and costs rising, then get back to us, champ.

[dr_n00b]

well, considering the price bump was supposed to be 7% and ended up being 10%, considering toy manufacturing costs are heavily dependant on oil prices, which have gone down 40% since the price increase was announced, and considering the shoddy quality control and cheap paint apps we suddenly get on new toys - all while hasbro keep making more money than last year (which saw the sale of over 3 million tf movie toys in less than 3 months) - i'd say yeah, they're greedy bastards. and thanks for the welcome, btw.

[First Gen]

well, considering the price bump was supposed to be 7% and ended up being 10%, considering toy manufacturing costs are heavily dependant on oil prices, which have gone down 40% since the price increase was announced, and considering the shoddy quality control and cheap paint apps we suddenly get on new toys - all while hasbro keep making more money than last year (which saw the sale of over 3 million tf movie toys in less than 3 months) - i'd say yeah, they're greedy bastards. and thanks for the welcome, btw.

Hey Dr_n00b, WELCOME TO SEIBERTRON!!! WARNING, SEIBERTRON CONTAINS NUTS!!!

Now that I've welcomed a new member, its great to hear everyones opinion on the forums from every aspect, but in light of some of the issues you mentioned, I'd like to add some.

HASBRO has projected price increases on some of its merchandise within the US and overseas, but as it stands, nearly 80% of their items sell at a price point of 20.00USD or less. That's pretty good. And with the recent global market crisis, retailers have actually lowered price points on some of their items to include deluxe class figures Transformers, along with some of the scouts and legends, depending on the store.

Yes you need oil for plastic, but that sweet light crude oil I believe, not the same oil used for making gasoline. And to be quite frank, a price drop in oil today wouldn't be recognized by the global market for at least a month.

Also, with the shoddy paint aps and QCI, I wholeheartedly agree with you on that and do recommend you contact HASBRO about it via their home website http://www.hasbro.com. It doesn't matter what the circumstances may be, as consumers we deserve a good quality product if we pay the price for it, and the more you tell them that the more they will listen.