Raving Toy Maniac

Hasbro Reports Financial Results for the Third Quarter 2012

Company is Delivering on Stated Objectives for 2012

• Net earnings for the third quarter 2012 were $164.9 million, or $1.24 per diluted share, compared to $171.0 million, or $1.27 per diluted share in 2011; Net earnings excluding the impact of foreign exchange translation were $169.8 million, or $1.28 per diluted share;
• Net revenues for the third quarter 2012 grew 1% to $1.39 billion excluding a negative $47.4 million impact of foreign exchange; Net revenues for the third quarter 2012 as reported were $1.35 billion compared to $1.38 billion in 2011;
• Operating profit of 18.6% of revenues increased from 18.0% in 2011 led by gains in the U.S. and Canada Segment operating profit margin.

PAWTUCKET, R.I. -- October 22, 2012 -- Hasbro, Inc. today reported financial results for the third quarter 2012. Net earnings for the third quarter 2012 were $164.9 million, or $1.24 per diluted share, versus $171.0 million, or $1.27 per diluted share, in 2011. Excluding the impact of foreign exchange translation, net earnings were $169.8 million, or $1.28 per diluted share. Net revenues for the third quarter 2012 were $1.35 billion compared to $1.38 billion in 2011. Excluding a negative $47.4 million impact of foreign exchange, net revenues increased 1% to $1.39 billion.

"We are delivering on the objectives we set for the year," said Brian Goldner, President and Chief Executive Officer. "The U.S. and Canada segment operating profits are improving to historical levels and the Games category is stabilizing with innovative new offerings and partnerships. Additionally, we are driving innovation across Hasbro and partner brands this holiday season including toys, games, digital play, licensed goods and immersive entertainment experiences for consumers around the world."

"We are entering the holiday season with exciting, innovative products, including some of the hottest toys in the market and a tremendously successful MARVEL line," said Deborah Thomas, Chief Financial Officer. "In the all important fourth quarter, we plan to drive these and other initiatives with a significant increase in marketing support in an environment of significantly lower U.S. retail inventory. As a result, for the full year 2012, we continue to believe, absent the impact of foreign exchange, we will again grow revenues and earnings per share."

Major Segment Performance

U.S. and Canada segment net revenues were $774.5 million, an increase of 1%, compared to $764.6 million in 2011. The segment's results reflect growth in the Girls and Games categories, partially offset by declines in the Boys and Preschool categories. The U.S. and Canada segment reported 20% operating profit growth to $154.2 million compared to $128.8 million in 2011.

Net revenues in the International segment grew 1% absent the negative $47.1 million impact of foreign exchange. Including the impact of foreign exchange, International segment net revenues were $524.1 million, down 7%, compared to $563.3 million in 2011. Revenue in the International segment reflects 9% growth in Latin America offset by a decline in Europe and Asia Pacific. Additionally, revenues in the Games and Preschool categories were flat while the Boys and Girls categories declined. The International segment reported an operating profit of $85.5 million compared to $100.7 million in 2011.

Entertainment and Licensing segment net revenues were $43.1 million compared to $46.3 million in 2011. The segment continued to benefit from the sale of television programming in all formats in the U.S. and internationally offset by lower movie-related revenues. The Entertainment and Licensing segment reported an operating profit of $10.7 million compared to $15.3 million in 2011.

Product Category Performance

In the Boys category, net revenues decreased 12% to $471.1 million. MARVEL products continued to post strong year-over-year gains globally, which were more than offset by expected declines in TRANSFORMERS and BEYBLADE products.

Net revenues in the Games category were flat in the quarter at $365.7 million. TWISTER, MAGIC: THE GATHERING, BATTLESHIP and Boys Action Gaming products, including TRANSFORMERS BOT SHOTS, continued to perform well. New gaming initiatives, including ZYNGA and ANGRY BIRDS STAR WARS games began shipping in the quarter ahead of their fourth quarter launch dates.

For the third quarter 2012, the Girls category net revenues increased 17% to $302.3 million. Several new initiatives, including FURBY and ONE DIRECTION product launched during the quarter while MY LITTLE PONY product, backed by global television, continued to deliver strong year-over-year growth as did EASY-BAKE. Additionally, several new holiday products including, BABY ALIVE BABY WANNA WALK and FURREAL FRIENDS BABY BUTTERSCOTCH and BOUNCY MY HAPPY TO SEE ME PUP generated strong initial revenues.

Net revenues in the Preschool category declined 5% to $206.0 million. The category benefited from continued growth in the PLAYSKOOL HEROES line and PLAY-DOH, as well as new brand initiatives KOOSH and PLAYSKOOL ROCKTIVITY. SESAME STREET products declined versus last year's launch of the line.

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.