Oct 19, 2009 7:10 am US/Pacific
Toymaker Hasbro 3Q Profits Rises On Cost-Cutting
NEW YORK (CBS) ―
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Monopoly games made by Parker Brothers, a subsidiary of Hasbro, are offered for sale at a Toys R Us store Oct. 22, 2007, in Chicago.
Scott Olson/Getty Images
Hasbro Inc, the nation's second biggest toymaker, said Monday its profit rose 8.8 percent in the third quarter, helped by lower costs and slightly higher sales of Transformers and G.I. Joe toys.
Hasbro said its earnings rose to $150.4 million, or 99 cents per share, for the three months ended Sept. 27, up from $138.2 million, or 89 cents a share, a year ago.
The latest results top the average analyst estimate of 93 cents a share, as measured by a survey by Thomson Reuters.
The Pawtucket, R.I.-based company said its joint venture with Discovery Communications hurt earnings per share by 3 cents.
Revenue fell 1.7 percent to $1.28 billion from $1.20 billion a year ago and missing analysts' estimates of $1.32 billion.
Hasbro makes G.I. Joe, Transformers, My Little Pony, Playskool and Tonka toys, as well as such games as Monopoly, Trival Pursuit, and Dungeons & Dragons.
Its shares fell $1.13, or 3.8 percent, to $28.39 in morning trading.
Hasbro said North American sales reflect stronger sales of toys for boys, but revenue was weighed down by weakness in girls, preschool and the games and puzzles categories.
Last week, the nation's biggest toymaker, Mattel Inc., reported a profit decline of 3.5 percent as sales fell 8 percent. Mattel makes Hot Wheels and American Girl dolls.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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