Hasbro posts poor earnings

No. 2 Hasbro Inc. (HAS) posted higher third-quarter earnings as it cut costs, but the results were weaker than expected, with revenue down 2 percent as sales of its once-hot Beyblade continued falling.

Hasbro said third-quarter net income rose to $88.7 million from $85.8 million, while earnings per share fell to 45 cents from 48 cents per share on an increase in average shares outstanding.

Analysts, on average, estimated profit of 51 cents per share from Hasbro, the maker of My Little Pony (search) and Transformers, according to Reuters Estimates.

Revenue fell 2 percent to $947.3 million from $971.1 million.

Hasbro Chief Executive Alfred J. Verrecchia said third quarter top-line performance was "disappointing," with a "challenging" environment and softness in the boys' division.

He said Hasbro was confident it could continue to increase earnings over the rest of the year as it cut costs and achieved its operating margin goal of 12 percent or better by 2005.

"However, given our top line performance year-to-date and the uncertain retail environment, it is increasingly unlikely that we will achieve our goal of revenue growth for 2004," Verrecchia said in a statement.