Hasbro Reports Third Quarter 2011 Results

• Net revenues for the third quarter 2011 grew 5% to $1.38 billion compared to $1.31 billion for the third quarter 2010;
• Net earnings for the third quarter 2011 increased 10% to $171.0 million, compared to $155.2 million in 2010;
• International segment net revenues grew 23% to $563.3 million versus $458.9 million in 2010; and
• Boys and Preschool category net revenues grew 15% and 12%, respectively.

Hasbro Inc. today reported revenue and earnings growth for the third quarter 2011. The Company reported 5% net revenues growth to $1.38 billion compared to $1.31 billion in the third quarter 2010. The Company reported a 10% increase in net earnings for the third quarter 2011 to $171.0 million compared to $155.2 million in 2010.

Transformers with large turn-out

"We continue to expect to deliver meaningful growth in both revenues and earnings per share for the full-year 2011 versus our 2010 reported full-year results," said Brian Goldner, President and Chief Executive Officer. "Our performance this year demonstrates we are successfully executing our strategy globally. We begin the fourth quarter with a number of encouraging factors supporting our full-year outlook. We have a great line up of innovative, sought-after toys and games for the holiday, many of which are only recently hitting retail shelves; our point-of-sale both in the U.S. and internationally is positive and showing good momentum; our U.S. retail inventories are down versus a year ago; and we continue to experience very strong trends in our international business."

In the third quarter, worldwide net revenues in the Boys product category increased 15% to $534.6 million; the Games and Puzzles category decreased 6% to $364.7 million; the Girls category declined 4% to $259.1 million; and the Preschool category was up 12% to $217.4 million.

U.S. and Canada segment net revenues declined 7% to $764.6 million compared to $825.5 million in 2010. The reported results reflect growth in the Preschool category, which was offset by declines in the Boys, Girls and Games and Puzzles categories. The U.S. and Canada segment reported an operating profit of $128.8 million, compared to $158.8 million in 2010.

International segment net revenues grew 23% to $563.3 million, an increase of $104.4 million compared to $458.9 million in 2010. Revenue in the International segment reflects growth in the Boys category, which offset slight declines in the other product categories. The International segment reported a 42% increase in operating profit to $100.7 million, compared to an operating profit of $70.8 million in 2010.

Entertainment and Licensing segment net revenues increased 69% to $46.3 million, compared to $27.5 million in 2010. Revenue in the Entertainment and Licensing segment reflected growth in licensing revenue associated with the sale of television programming globally, movie and merchandise-related revenue from Transformers: Dark of the Moon as well as a onetime payment from Universal Studios. The Entertainment and Licensing segment reported an operating profit of $15.3 million compared to $5.9 million in 2010.