'Menace' toys boost Hasbro
Company profits out of this world
The nation's No. 2 toy company said Thursday that strong demand for its "Star Wars" line helped it post strong second-quarter profits of $32 million, besting Wall Street estimates by 400%.
The Pawtucket, R.I.-based company reported record revenues for the period ended June 30 of $875 million, a gain of 53%. Last year, the company generated profits of $5.5 million on revenue of $572 million.
Earnings before interest, taxes, depreciation and amortization reached $118 million, compared with a year-ago take of $53 million.
Hasbro launched its line of "Star Wars: Episode I -- The Phantom Menace" toys in early May, ahead of the pic's May 19 release.
Results were also bolstered by shipments of Tiger Electronics' Furby and higher sales of computer-based games from the company's Hasbro Interactive line.
Exceeded expectations
"Our 'Star Wars' product line has in many cases exceeded our high expectations," CEO Alan Hassenfeld said. "The international rollouts of 'Star Wars' product and the movie continue to be met with great enthusiasm."
The company behind Playskool, Milton Bradley and Parker Brothers said it anticipated a healthy second half of the year, when it will be shipping new "Star Wars" products.
Strong results came despite a 28% drop in Hasbro's share price since May. The company said it plans to repurchase almost 5 million shares of its common stock for $147 million, with $90 million going toward buying back most of DreamWorks' equity interest.
Shares of Hasbro jumped $1.44 to close Thursday at $27.63, a gain of 5%.
