Hasbro Sees '09 EPS Higher, With Caveats On Global Economy

Hasbro Inc. (HAS) expects to increase both revenue and earnings per share this year barring "any further declines in global economies or the exchange rate," Chief Executive and President Brian Goldner said Monday.

During a conference call to discuss fourth-quarter results, Goldner said Hasbro has initiatives in place to be successful in posting what would be its ninth consecutive year of EPS growth.

He did not provide specific guidance, which is expected to come at an analyst presentation Friday and is likely to reflect what executives called "the realities of the market."

Hasbro's fourth-quarter results were lower than many on Wall Street expected as toy makers couldn't escape the impacts of lower consumer spending over the holidays. Hasbro said increased promotions intended to help retailers clear slow-moving merchandise hurt gross margin in the quarter but inventory-related pressures could continue in the current year.

"In the aggregate, both our inventory and our retailers' inventory is a bit higher than we would like to see in a normal year," Chief Financial Officer David D. R. Hargreaves said. Hasbro, however, is pleased with the quality of inventories given that the fourth-quarter promotions were effective.

He said retailers will probably try to cut inventories in the first quarter in light of the recession. "That will be a challenge that we have to face and we're already starting to face that challenge," he said.

Hasbro has cut the work week at one plant and held off on bringing workers back from another plant after an extended, companywide holiday break.

Hasbro shares are currently up $1.34, or 5.6% at $24.89.

-By Mary Ellen Lloyd, Dow Jones Newswires; 704-948-9145; [e-mail]