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Hasbro Announces Preliminary Results for the Fourth Quarter and Full-Year 2012
PAWTUCKET, R.I. -- January 25, 2013 -- Hasbro, Inc. today announced preliminary full-year 2012 results.
"In 2012, we met many of the objectives we set for Hasbro," said Brian Goldner, Hasbro's President and Chief Executive Officer. "Based on preliminary results, we returned the U.S. and Canada segment to historical operating profit levels; we grew revenues in the Games category against our 2012 objective of stabilizing revenues; and we grew revenues in our Girls category. We also experienced double digit growth in our emerging markets business and achieved profitability in most major emerging markets a year ahead of our plan."
"We had a number of strong product initiatives, but consumer demand through much of the holiday season was less than anticipated in both the U. S. and certain international markets. As a result, fourth quarter revenues did not meet our expectations. Despite the lower than anticipated revenue, we grew our operating profit margin and earnings per share absent fourth quarter restructuring charges and the impact of foreign exchange," continued Goldner.
Based on preliminary full-year results, the Company expects to report earnings per diluted share for 2012, excluding fourth quarter restructuring charges, in the range of $2.73 to $2.75. This includes an approximate $0.10 per diluted share negative impact from foreign exchange in 2012. Absent the unfavorable impact of foreign exchange, earnings per diluted share excluding fourth quarter restructuring charges are expected to be in the range of $2.83 to $2.85.
Final 2012 reported earnings will reflect pre-tax restructuring charges of approximately $37 million recorded in the fourth quarter, or approximately $0.21 per diluted share, associated with the commencement of a cost savings initiative the Company is implementing. Additionally, 2012 earnings include $11.1 million, or $0.06 per diluted share, of previously announced severance costs recorded in the first quarter 2012. Reported 2012 earnings per diluted share are expected to be in the range of $2.52 to $2.54.
The Company's reported 2011 earnings per diluted share of $2.82, which included the impact of a $20.5 million favorable tax adjustment, or $0.15 per diluted share, and pre-tax expense of $14.4 million, or $0.07 per diluted share, related to costs associated with establishing Hasbro's Gaming Center of Excellence in Rhode Island. Earnings per diluted share for 2011 excluding these two items were $2.74.
The Company expects to report full-year 2012 revenues of approximately $4.09 billion, compared to $4.29 billion in 2011. Absent a $99 million negative impact from foreign exchange, full year 2012 revenues declined 2%. For the fourth quarter 2012, the Company anticipates revenues to be approximately $1.28 billion, including a negative $8 million impact from foreign exchange, compared to $1.33 billion in 2011.
"As we execute our branded play strategy, we are doing so in an industry with challenging growth prospects in certain geographies. During the fourth quarter we established a plan to deliver $100 million of annual cost savings by 2015. This plan focuses our efforts around developing content-rich brand initiatives consumers and retailers are responding to, thereby enabling Hasbro to focus on fewer, more significant global initiatives and enhancing shareholder returns in the coming years," said Goldner.
The Company expects to incur charges of approximately $37 million pre-tax in 2012, and an additional estimated $20-$30 million in 2013 associated with these planned actions to reduce ongoing expenses, including an approximate 10% reduction in workforce, facility consolidation and process improvements. These actions are anticipated to begin to deliver savings in 2013, with full recognition in 2015 as all aspects of the plan are implemented.
"We fundamentally believe our strategy is sound and we remain confident in our ability to drive profitable long-term growth through brand innovation," said Deb Thomas, Chief Financial Officer. "We believe a reduction in ongoing costs in a challenging environment will deliver the greatest long-term return to our shareholders."
About Hasbro
Hasbro, Inc. (NASDAQ: HAS) is a branded play company providing children and families around the world with a wide-range of immersive entertainment offerings based on the Company's world class brand portfolio. From toys and games, to television programming, motion pictures, digital gaming and a comprehensive licensing program, Hasbro strives to delight its global customers with innovative, well-known and beloved brands such as TRANSFORMERS, LITTLEST PET SHOP, NERF, PLAYSKOOL, MY LITTLE PONY, G.I. JOE, MAGIC: THE GATHERING and MONOPOLY. The Company's Hasbro Studios develops and produces television programming for markets around the world. The Hub TV Network is part of a multi-platform joint venture between Hasbro and Discovery Communications (NASDAQ: DISCA, DISCB, DISCK), in the U.S. Through the Company's deep commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world for future generations and to positively impact the lives of millions of children and families every year. It has been recognized for its efforts by being named one of the "World's Most Ethical Companies" and is ranked as one of Corporate Responsibility Magazine's "100 Best Corporate Citizens." Learn more at http://www.hasbro.com.
Submitted by News on Sat, 2013-01-26 16:08