Thursday, July 30th18.3°C
26925
26306

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 TSX14377.51+75.71
S&P CDNX587.67+2.91
DJIA17738.83-12.56
Nasdaq5115.60+3.87
S&P 5002105.63-2.94
CDN Dollar0.7676-0.0045
Gold1096.90+0.60
Oil49.48+0.32
Lumber251.00-0.60
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.18+0.01
Knighthawk0.010.00
QHR Technologies Inc1.41+0.01
Cantex0.05+0.00
Anavex Life Sciences0.793+0.007
Metalex Ventures0.045-0.005
Russel Metals19.10-0.11
Copper Mountain Mining0.82-0.03
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.14-0.01
Decisive Dividend Corp2.50-0.08

 





FEATURED Property
2238778#409 2435 Pleasant Valley Road
1 bedrooms 1 baths
$99,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26509




Member of BC Press Council