Hasbro, Inc. (NASDAQ:HAS)’s third quarter net earnings declined by 4 percent, to $164 million or $1.24 per share from $171 million or $1.27 per share during the same period last year. Excluding the impact of foreign exchange fluctuations, the company earned earnings were $169.8 million, or $1.28 per diluted share.
The toy maker posted $1.35 billion net revenue. The result is lower than its $1.38 billion net revenue during the same period last year. Changes in foreign currency exchange rates reduced the company’s net revenue by $47.4 million.
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Hasbro’s operating profit increased from 18 percent during the third quarter a year ago, to the current 18.6 percent, due to gains in operating margin from its Canada and United States business segments.
Hasbro, Inc. (NASDAQ:HAS)’s segments in Canada and the United States reported $774.5 million net revenue, 1 percent higher than its 764.6 million third quarter revenue in 2011. The result was demonstrated by a 20 percent increase in operating profit, from $128 million in 2011 to the current $154.2 million. The U.S. and Canada segments reported 20% operating profit growth to $154.2 million, compared to $128.8 million in 2011.
Hasbro, Inc. (NASDAQ:HAS) said, the Girls and Games categories grew by 17% to $302.3 million, which partially compensated the revenue decline of the Boys and Preschool categories.
In a statement, Brian Goldner, president and chief executive officer of Hasbro said, “We are delivering on the objectives we set for the year. The U.S. and Canada segments’ operating profits are improving to historical levels, and the Games category is stabilizing with innovative new offerings and partnerships.”
Hasbro’s international segment posted $524.1 million net revenues, including the $47.1 million negative impact of foreign exchange. The outcome is 7 percent lower than its $563.3 million net revenues in 2011. Excluding the negative impact of foreign exchange, the segment’s revenue rose by 1 percent.
According to the toy maker, the International segment’s third quarter revenue declined in the Asia Pacific and Europe, but gained 9 percent in Latin America. Its operating profit declined from $100.7 million in 2011, to the current $85.5 million.
Meanwhile, Hasbro’s Entertainment and Licensing segment’s net revenues also declined from $46.3 million, to $43.1 million. Its operating profit dropped from 15.3 million to $10.7 million.
Hasbro, Inc. (NASDAQ:HAS)’s third quarter revenues in the Games and Preschool categories remained the same at $365.7 million, while the Boys and Girls categories dropped by 12% to $471.1 million. Its Marvel products posted strong gains worldwide. Several games, including Twister, Magic: The Gathering, Battleship, and Transformer Bot Shots are performing well in the market.
Hasbro’s chief financial officer, Deborah Thomas, said, “We are entering the holiday season with exciting, innovative products, including some of the hottest toys in the market, and a tremendously successful MARVEL line.” According to her, the company plans to drive innovations, intensify marketing support, and other initiatives to achieve growth in the fourth quarter. Thomas said, “As a result, for the full year 2012, we continue to believe, absent the impact of foreign exchange; we will again grow revenues and earnings per share.”
The toy maker started shipping its new gaming initiatives, such as Zynga and Angry Birds Star Wars, ahead of their scheduled launching in the fourth quarter.
During the third quarter, Hasbro, Inc. (NASDAQ:HAS) repurchased 142,336 shares, worth $5.2 million, at an average price of $36.18 per share. The company also distributed $46.9 million in cash dividends to shareholders.