Hasbro, Inc. (NYSE: HAS) today reported strong second quarter results. Worldwide net revenues for the quarter were $572.4 million compared to $516.4 million a year ago, and included a $9.1 million favorable impact from foreign exchange, the Pawtucket toymaker reported.
According to the company, net earnings for the quarter were $29.5 million or 13 cents per diluted share, compared to net earnings of $18.8 million or 6 cents per diluted share in 2004.
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Revenues in the U.S. Toys segment were $209.3 million for the quarter compared to $167.2 million a year ago, reflecting a strong performance from Star Wars brands and a number of other toy franchises including Nerf, My Little Pony, Transformers and Littlest Pet Shop. The segment reported an operating profit of $14.6 million for the quarter compared to an operating loss of $7 million last year, due to the increase in volume and lower fixed expenses in 2005, the company said.
“We are pleased with our results this past quarter – revenues were up 11%, driven by significant Star Wars volume, as well as strong performance from a number of other Hasbro brands,” Alfred J. Verrecchia, President and Chief Executive Officer, said in a statement.
Revenues in the games segment were $142.9 million for the quarter compared to $161.6 million a year ago. The decrease in revenue is primarily related to trading card games. In addition, board game revenues declined due to the increasing seasonality of the business which reflects retailers continuing focus on keeping inventory levels down. The Games segment reported operating profit of $13.4 million compared to an operating profit of $28.7 million last year, primarily due to a decline in volume, the company reported.
International segment revenues were $210.2 million for the quarter compared to $179.2 million a year ago, on the strength of Star Wars sales, as well as a number of other toy and game brands. The International segment reported an operating profit of $4.5 million compared to an operating profit of $2.8 million a year ago, the statement said.
“Hasbro’s top and bottom line growth, combined with the strong cash generating ability of our business, enabled us to further strengthen our balance sheet year over year. The Company also repurchased 360,000 shares during the second quarter, as part of the common stock buyback plan approved by the Board of Directors in May,” David Hargreaves, chief financial officer, said in a statement.
The Company reported second quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $85.9 million compared to $63.7 million in 2004, the release said.
