Games and toys manufacturer Hasbro, Inc. (HAS) reported Monday a loss for the first quarter, hurt by lower revenues and hefty severance costs, but expects an improvement in revenues in the second half of the year. For full year 2012, the company sees further growth in revenues and earnings, absent an impact of foreign exchange.
Deborah Thomas, chief financial officer of the company said, "In the first quarter 2012, operating profit was impacted by the lower revenue base in addition to $11.1 million in severance costs across the global organization and approximately $6 million associated with an extra week of expenses."
The company said its recent first quarter was a 14-week period, compared to a 13-week period quarter in 2011. Hasbro expects that a higher percentage of full year revenues to be in the second half of the year.
International segment revenues increased 14 percent to $289.7 million, reflecting growth in all major geographic regions. Brian Goldner, president and chief executive officer of the company stated, "We continue to experience good momentum in our international business and positive point-of-sale trends in the U.S. and international markets."
Meanwhile, the U.S. and Canada segment net revenues dropped 16 percent to $329 million. The company said it is executing plans in the U.S. and Canada segment to return to "historical operating profit levels."
In the first quarter, the company posted a net loss of $2.58 million or $0.02 per share, compared to net profit of $17.20 million or $0.12 per share reported a year ago.
Excluding $0.06 per share of severance costs, quarterly net earnings were $0.04 per share. On average, 13 analysts polled by Thomson Reuters expected earnings per share of $0.08 for the quarter. Analysts' estimates typically exclude one-time items.
Net revenues for the quarter declined 3 percent to $648.85 million from $671.99 million in the same quarter last year, which was also below analysts' estimate of $666.52 million. Foreign exchange had a negative impact of $8.5 million on revenues.
HAS closed Friday's regular trading at $35.92 on the Nasdaq.
by RTT Staff Writer
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