Hasbro loss widens in 1Q on savings initiative costs

PRIMARILY DUE TO $28.9 million in pre-tax charges associated with a cost savings initiative, Hasbro Inc. saw its net loss widen 159 percent to $6.7 million during the first quarter of 2013.
Posted 4/22/13

PAWTUCKET – Toy and game maker Hasbro Inc. saw its net loss widen 159 percent from $2.6 million, or 2 cents per diluted share, in the first quarter of 2012 to $6.7 million, or 40 cents per diluted share, in the first quarter of 2013, the company announced Monday.

During the first quarter, Hasbro incurred $28.9 million in pre-tax charges, or 14 cents per diluted share, associated with a cost savings initiative designed to “better align resources and costs while targeting $100 million in annual savings by 2015,” according to a release.

Hasbro’s release said the company expected full-year charges of $30 million to $35 million, prior to other potential pension charges, which could be up to $10 million for 2013. Still, the company said it expected gross savings for 2013 to be $45 million to $48 million.

Without the costs related to the savings initiative, Hasbro said its bottom line increased 30 percent to $6.6 million, or 5 cents per diluted share, compared with first-quarter 2012 net income of $5.1 million, or 4 cents per diluted share, excluding an $11.1 million charge in restructuring fees.

As its official bottom line fell, Hasbro saw its revenue rise to $663.7 million during the three months ended March 31, a 2.3 percent increase from the $648.8 million reported during the first quarter of 2012.

In product categories for the first quarter, Hasbro saw net revenue drop 20 percent in the boys segment to $242.8 million. During the quarter, the company’s games, girls and preschool segment rose 26 percent, 23 percent and 8 percent, respectively.

“We entered 2013 with a heightened focus on our brands, organization and profitability and delivered a good start to the year,” Brian Goldner, Hasbro president and CEO, said in prepared remarks.

“We are creating innovative customer experiences across our brand blueprint globally while improving efficiencies and focus throughout our business,” he said. “Our emerging markets continued to post double-digit revenue gains while the U.S. and Canada team delivered another quarter of revenue growth backed by profitability improvement.”

The company declared a quarterly cash dividend of 40 cents per common share, an 11 percent increase from the first-quarter 2012 dividend of 36 cents per common share.

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