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Hasbro (HAS) Misses Q2 EPS by 6c; Issues Update to Cost-Savings Plan

July 22, 2013 6:33 AM
Hasbro, Inc. (NASDAQ: HAS) reported Q2 EPS of $0.29, $0.06 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $766.3 million versus the consensus estimate of $793 million.

Revenues for Games up 19%; Girls up 43%; and Preschool up 4% in the quarter.

Cost Savings Update::

As previously announced, the Company is undertaking a cost savings initiative designed to better align resources and costs while targeting $100 million in annual savings by 2015.

During the second quarter 2013, the Company incurred $2.5 million in pre-tax partial pension settlement charges, or $0.01 per diluted share, associated with this initiative. Potential additional pension settlement charges could be as much as $8 million dependent on the amount and type of benefit payments pension participants request during the remainder of 2013. The Company did not record any additional restructuring charges during the second quarter, but continues to expect full-year charges of $30 to $35 million, prior to pension charges. In the first quarter 2013, the Company recorded $28.9 million in restructuring charges.

The expectation for gross savings for 2013 continues to be $45 to $48 million, resulting in expected net savings of $13 to $15 million for the full-year, prior to pension charges.

For earnings history and earnings-related data on Hasbro, Inc. (HAS) click here.


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