Hasbro has assuaged investor fears by posting results Monday which showed growth despite a drop in sales of toys linked to the movies “GI Joe” and “Transformers.” Fear about the toy industry had been abounding after rival company Mattel Inc posted third quarter result that saw shares drop.
Hasbro’s profit for the third quarter rose by 3.2 percent after revenue from its toys increased. The company has been improving its bottom line in the last few quarters, with expenses reined in coupled with an overall stabilization of economic condition.
Hasbro has also just launched a new TV station called the Hub network with Discovery Communications, which is expected to take a large chunk of change from the forth quarter profit reports, but even with the impact, Hasbro are expecting the fourth quarter to show higher revenue than last year "barring a further decline in consumer spending, global economic conditions or foreign exchange," according to CFO Deborah Thomas.
Chief competitor Mattel reporter third quarter results on Friday that caused a 6.5 percent fall in share prices, which also spilled over onto Hasbro causing a 2 percent drop in prices as the weekend started.
Hasbro have also reported a $155.2 million profit, which is up by nearly $5 million from the same time last year. Boys products were the highlight of Hasbro’s product line, together with preschool products, with a 4 and 9 percent rise respectively. Overall, Hasbro has risen over 40 percent this year, while competitor Mattel has been struggling with costly recalls.
