Hasbro, Mattel expect decrease in 2009 profits

PAWTUCKET and EL SEGUNDO, Calif. – Hasbro Inc. and Mattel Inc. last week said that higher labor and production costs are hurting profit, Bloomberg News reported.
Hasbro has “tempered” its expectations for 2009 because of the economy, executives said during a conference call with analysts. U.S. retail sales during the first two weeks of October have had a “slight downturn.” from a year earlier, they said.
Mattel said it may raise prices next year after reporting third-quarter earnings that trailed analysts’ estimates.
Hasbro, the maker of Transformers action figures and Monopoly games, posted its slowest sales growth in seven quarters.
Increased expenses to make and ship toys are pressuring both companies, which posted at least 40 percent of their 2007 profit during the fourth-quarter holiday season. Mattel is promoting its Elmo Live! furry red Muppet, while Hasbro is marketing the $180 Furreal Friends Biscuit animatronic puppy, as they try to entice consumers worried about keeping their jobs and paying bills. &#8226