Child Toys Blog

Hasbro Does Well With Movie Toys

Toymaker Hasbro's second-quarter profit is up, helped by demand for products related to movies including Iron Man and Star Wars.

But shares fell yesterday as the company said it would increase prices for the second time this year on September 1 to offset the rising cost of oil and commodities.

"Clearly the current economic situation in the US and around the globe makes it a much more challenging environment than we would like," said Brian Goldner, president and chief executive.

But he said the company had performed well in previous economic downturns and was "well positioned to have a strong 2008".

Profit rose to US$37.5 million ($49.3 million), or US25c a share, from US$4.8 million, or US3c a share, a year earlier. Excluding a one-time expense from a year ago related to repurchasing some warrants, net income fell 9 per cent, but results beat the US22c a share that analysts polled by Thomson Financial, predicted on average.

Sales jumped 13 per cent to US$784.3 million from US$691.4 million. United States and Canada sales rose 11 per cent and international sales rose 15 per cent.

Analysts expected sales of US$675.4 million.

Hasbro said its boys' business sales rose 13 per cent, boosted by sales of products from Star Wars, Indiana Jones and the Kingdom of the Crystal Skull, Iron Man and The Hulk.

Most Star Wars products were tied to an animated Star Wars movie, Star Wars: The Clone Wars, which is set to open on August 15.

Transformers products also continued to sell well, Hasbro said.

posted by Eugen @ 7/23/2008 02:57:00 AM