Monday, July 28th13.0°C
22568

Hasbro to cut 10% of workforce

Toy maker Hasbro said Friday that its fourth-quarter revenue failed to meet expectations because of weaker-than-expected demand over the holidays. It plans to cut about 10 per cent of its workforce and consolidate facilities to reduce expenses.

The stock dropped 3 per cent Friday.

Pawtucket, R.I.-based Hasbro, whose brands include Monopoly and Nerf, has about 5,500 employees worldwide. A 10 per cent workforce cut would put about 550 people out of work.

While Hasbro said consumer demand was softer than it expected over the holidays, the season was expected to be tough. This was in part because retailers were ordering inventory more cautiously.

In addition, stores such as Wal-Mart, Kmart and Toys R Us beefed up their layaway and reservation services to encourage shoppers to buy toys early in the season, which meant items may have been scarce later on.

The November and December holiday selling period is critical for toy makers because it can make up as much as 40 per cent of their annual revenue.

Spokesman Wayne Charness said that the job cuts will all be this year and will occur globally, with no particular business groups targeted. He said that the facility consolidations could result in some closures but was not specific about which plants would be affected other than to say no closures were planned In Rhode Island or Massachusetts in 2013. Hasbro has offices in 40 countries worldwide.

CEO Brian Goldner said in a statement that Hasbro created a plan during its fourth quarter to deliver $100 million in annual cost savings by 2015.

The company expects charges of about $37 million in 2012 and an additional $20 million to $30 million in estimated charges in 2013 related to its cost-cutting efforts.

Hasbro Inc. anticipates fourth-quarter revenue of about $1.28 billion. Analysts polled by FactSet predicted revenue of $1.4 billion. Unfavourable foreign currency exchange rates lowered results by $8 million.

Goldner said that demand over much of the holiday season was weaker than expected in the U.S. and some international markets.

For 2012, Hasbro expects adjusted earnings between $2.89 and $2.91 per share on revenue of approximately $4.09 billion. Unfavourable foreign currency exchange rates lowered revenue by $99 million.

Wall Street forecast earnings of $2.84 per share on revenue of $4.2 billion.

The company will report its fourth-quarter and full-year financial results on Feb. 7.

Its stock fell $1.14, or 3 per cent, to close at $37.31 Friday. Its shares have traded in a 52-week range of $32 to $39.98.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15455.04+60.59
S&P CDNX1017.445.79
DJIA16960.57-123.23
Nasdaq4449.564-22.543
S&P 5001978.34-9.64
CDN Dollar0.9251+0.0004
Gold1304.30+1.2001
Oil104.30-0.29
Lumber325.50+0.20
Natural Gas3.781+0.001

 
Okanagan Companies
Pacific Safety0.185-0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07-0.01
Anavex Life Sciences0.275-0.005
Metalex Ventures0.08+0.01
Russel Metals35.36-0.21
Copper Mountain Mining2.820.00
Colorado Resources0.21+0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.19+0.01

 



22557

FEATURED Property
2028513580 Sarsons Road
1 bedrooms 2 baths
$349,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...

_








Member of BC Press Council


22758