NEW YORK (AP) -- Strong sales of boys' brands including Transformers and Nerf helped Hasbro Inc. post a better-than-expected fourth-quarter profit, sending shares up 11 percent, briefly touching a 52-week high.
The owner of the G.I. Joe, Tonka and Playskool brands also said it expects sales and earnings per share to grow this year, although it didn't offer specific estimates.
"Overall in 2009, the global economic environment did not improve significantly, but it also did not deteriorate further," CEO Brian Goldner said. "We were well positioned when the consumer came out to shop, and the consumer did come out to shop, albeit late in the fourth quarter."
Shares rose $4.11, or 13.3 percent, to $34.91 during midday trading, after earlier reaching a 52-week high of $35.19.
The fourth quarter is key for toy makers because it contains the holiday period and can make up to half of the year's sales.
Transformers -- boosted by the "Transformers: Revenge of the Fallen" movie in June -- took in $592 million in revenue in 2009, up 23 percent compared with 2007, when the original "Transformers" movie debuted. Revenue for G.I. Joe, also boosted by a summer blockbuster, totaled more than $125 million. Nerf, Play-Doh and Tonka grew 25 percent during the year.
Girls brands were weaker. Goldner said brands including PlaySkool and Furreal Friends were hurt by the company eliminating higher-priced items in the lines in 2009.
Amid the consumer spending downturn, Hasbro and other toy makers scaled back on toys costing over $100, but Goldner said they would introduce a select number of toys at higher prices this year.
Hasbro said its profit surged 77 percent to $165.6 million, or $1.09 per share, in the quarter ended Dec. 27, easily beating the 81-cents-per-share estimate of analysts polled by Thomson Reuters. These estimates normally exclude one-time items.
The company, based in Pawtucket, R.I., reported earnings of $93.6 million, or 62 cents per share, for the fourth quarter a year ago.
Sales climbed 12 percent to $1.38 billion from $1.23 billion, topping Wall Street's estimate of $1.34 billion.
"Overall fourth quarter was very good and was much better than we envisioned, even factoring in what were clearly market share gains in action figures and games and puzzles," said Wells Fargo Securities analyst Tim Conder.
Last month Barbie maker Mattel Inc., Hasbro's chief rival, said its fourth-quarter profit rose 86 percent, helped by cost cutting, while sales edged up 1 percent to $1.96 billion.
For the year, Hasbro's earnings grew 22 percent to $374.9 million, or $2.48 per share, compared with $306.8 million, or $2 per share, in 2008.
Annual sales improved to $4.07 billion from $4.02 billion.
The results extended the toy maker's streak to nine straight years of earnings-per-share growth and five straight years of revenue growth.
The company is also working on a joint venture children's network with Discovery Communications called "The Hub," scheduled to debut in the fall. Programming will include shows based on "My Little Pony" and "Transformers," among others.
Toy tie-ins with movies have traditionally done well for Hasbro, and the company has a full slate of upcoming movies over the next three years. In 2010, Marvel's "Iron Man 2" and Disney Pixar's "Toy Story 3" will debut.
In 2011, "Transformers III" is scheduled, along with two new Marvel features, "Thor" and "The First Avenger: Captain America."
In 2012, Universal will develop Hasbro's "Battleship" into a movie, and a sequel to "G.I. Joe" is scheduled. "Stretch Armstrong," starring Taylor Lautner and shot in 3D, and "Spider-Man 4" are also scheduled for 2012.
|
