(Updated with full-year results by PBN Staff)
PAWTUCKET – Hasbro Inc., the world’s second-largest toymaker, said fourth-quarter profit fell 15 percent, surpassing some analysts’ estimates as international sales increased.
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Net income declined to $140 million, or 99 cents a share, in the three months ended Dec. 26, from $165.6 million, or $1.09, a year earlier, the company said Monday in a statement. Analysts on average projected 92 cents, according to a Bloomberg survey.
The Pawtucket toymaker also reported full-year results. Revenue declined to $4 billion in 2010 from $4.07 billion in 2009, Hasbro said, noting that foreign exchange had a $17.7 million negative impact on the full-year results. Net income, however, increased to $397.8 million, or $2.74 per diluted share, from $374.9 million, or $2.48 per diluted share a year earlier.
For the U.S. and Canada operating profit dropped 8 percent, while the international segment surged 29 percent. In the entertainment and licensing segment, operating profit slumped 34 percent, reflecting a decline in Transformers and G.I. Joe movie-related revenue.
“From the beginning of the year, we recognized the challenge in growing revenue versus 2009, which was driven by Transformers and G.I. Joe entertainment. For much of the year, we believe we were on track to accomplish this. However, softness in U.S. consumer demand for games late in the year resulted in our full-year revenue being $66 million less than a year ago,” said Brian Goldner, Hasbro president and CEO, in a news release.
Hasbro repurchased a total of 15.8 million shares of common stock in 2010 at an average price of $40.37 per share for a total cost of $646.7 million.
Hasbro is using movies and television shows to market toys. The Hub, a joint venture children’s television network with Discovery Communications Inc., began broadcasting in October with shows based on Hasbro toy lines such as Transformers and My Little Pony.
The company said last month that fourth-quarter revenue declined in the U.S. and Canada. Consumers in North America, which accounts for more than 40 percent of total sales, spent less than Hasbro expected during the holiday shopping season.
Hasbro gained 24 cents to $44.82 on Feb. 4 in New York Stock Exchange composite trading. The shares surged 47 percent last year.
Mattel Inc., the world’s largest toymaker, reported Feb. 2 that fourth-quarter profit fell less than 1 percent to $325.2 million, or 89 cents a share. Analysts projected 86 cents.
