Hasbro profit falls during holiday season
NEW YORK (AP) -- Hasbro's net income fell 6 percent in the fourth quarter as the toy maker faced a challenging holiday season and incurred restructuring charges.
The Pawtucket, R.I., company, which makes Monopoly and Nerf, had already said last month that its revenue failed to meet expectations because of weaker-than-expected demand over the holidays. It plans to cut about 10 percent of its workforce and consolidate facilities to reduce expenses.
Toy makers are facing a slowdown in developed markets such as the U.S. and Europe as mobile devices and electronics steal attention from toys. Making matters worse, the companies are more vulnerable to the weak economic climate, because it's easier for people to cut back spending for dolls and games than for other things in their budget.
In 2012 overall U.S. toy sales declined slightly to $16.5 billion from $16.6 billion, according to research firm the NPD Group.
Hasbro isn't the only toy maker that struggled during the holidays. Mattel Inc., the nation's largest toy manufacturer, last week reported fourth-quarter results short of analysts' expectations for the key holiday quarter. The maker of Barbie and Matchbox also said a litigation charge weighed on results and net income was down 17 percent.
For the October-to-December period, Hasbro Inc. earned $130.3 million, or 99 cents per share. That compares with $139.1 million, or $1.06 per share, in the year-ago period. Not including one-time restructuring charges, the company made $1.20 per share.
Revenue slipped to $1.28 billion from $1.33 billion.
Analysts on average expected profit of $1.18 per share on revenue of $1.32 billion.
Hasbro shares fell 21 cents to $38.51 in after-hours trading.