Hasbro Falls After Fourth-Quarter Sales Trail ForecastKevin Orland
Hasbro Inc., the maker of Nerf, Playskool and Transformers toys, fell the most in nine months after saying preliminary fourth-quarter sales trailed its forecast because of weaker demand in the U.S.
The shares slid 4 percent to $36.91 at 10:16 a.m. in New York and earlier dropped as low as $36.60 for the biggest intraday decline since April 23. Pawtucket, Rhode Island-based Hasbro rose 13 percent last year, about matching the gain of the Standard & Poor’s 500 Index.
“Consumer demand through much of the holiday season was less than anticipated in both the U.S. and certain international markets,” Chief Executive Officer Brian Goldner said today in a statement. “As a result, fourth quarter revenues did not meet our expectations.”
Hasbro said revenue for 2012 was about $4.09 billion, a 4.7 percent decline from 2011 and less than analysts’ average estimate of $4.21 billion. The results imply fourth-quarter revenue of about $1.28 billion. Analysts estimated $1.41 billion, on average.
Per-share profit for the year, excluding restructuring charges, was about $2.73 to $2.75. The figure includes a negative effect of about 10 cents a share because of foreign-currency exchange rate fluctuations. Analysts predicted $2.83, on average.
Hasbro said it plans to reduce its workforce by about 10 percent, consolidate facilities and improve some processes. The actions will result in about $20 million to $30 million in pretax charges in 2013, the company said.
Hasbro is scheduled to report full fourth-quarter results on Feb. 7.
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