Hasbro Reports Sluggish Third Quarter Results
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Hasbro Inc., the No. 2 U.S. toy maker, reported on Thursday that its profits fell 84 percent due to sluggish sales and mounting losses in its interactive operations.Hasbro said net income fell to $13.8 million, or 8 cents a diluted share, compared with $85.2 million, or 43 cents, for the same quarter a year ago. Analysts lowered their expectations to 7 cents a share for the quarter, according to market research firm First Call/Thomson Financial. Hasbro warned last week that its performance would fall well short of previous estimates largely because of a sharp slowdown in sales of Pokemon and Star Wars products. It also said it was slashing its work force by about 5 percent. Worldwide net revenues dropped to $1.07 billion from $1.10 billion in the year-ago period. ``Even with challenging comparisons against last year's record results, I'm not pleased with our third-quarter performance,'' Hasbro Chairman Alan Hassenfeld said in a statement. Hasbro's most recent outlook for full-year 2000 earnings per share was 40 cents to 50 cents, before $140 million to $170 million in pretax charges. Hassenfeld said the company was evaluating the fourth quarter before providing a revenue and earnings outlook for 2001. Earnings in the third-quarter included a pretax loss of $6 million from Internet games operation Games.com. Its interactive division did not live up to already-reduced expectations, and Hasbro said last week it was exploring strategic alternatives for the business. Pokemon toy demand in the U.S. was soft, but strong internationally, the company said. Revenues from ``Star Wars'' toys are expected to be minimal in 2000. Shares fell 1/8 to $10 on the New York Stock Exchange Thursday. SOURCE: Reuters [Posted 10/19/2000]
 
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