Hasbro (TG:HAS)
Historical Stock Chart

From May 2019 to May 2024

Hasbro Inc. (HAS) said it began implementing a price increase Feb. 1 to cover increased costs on such things as paperboard packaging materials and labor rates in China.

During a conference call to discuss fourth-quarter results, Hasbro Chief Financial Officer and Operating Chief David D. R. Hargreaves said the world's second-largest toy maker is increasing prices by mid-single-digit percentages to make up for higher costs.

"There's a lot of pressures on vendors," he said.

Mattel Corp. (MAT), the largest toy maker, last week said it boosted prices Jan. 1 by mid-single-digit percentages due to higher costs.

Hasbro said costs for resins and related products may have gone down, but they represent a smaller portion of commodity costs than paperboard and printing, which are more expensive. Minimum labor rates and testing-safety costs in China were also higher at the end of 2008 than in 2007, and working capital costs for vendors have increased due to the tight credit markets, executives said.

Earlier Monday, Hasbro posted a 30% drop in fourth-quarter net income as margins fell due to weak holiday toy sales and the stronger dollar.

Hasbro, known for its GI Joe action figures and Tonka trucks, reported fourth-quarter net income of 62 cents a share, down from 84 cents a share a year earlier. Revenue fell 5.1% to $1.23 billion, despite strong sales of Playskool and Nerf products. Excluding the stronger dollar's impact, revenue rose 1%.

Analysts were expecting earnings of 75 cents a share on revenue of $1.27 billion.

Shares of Hasbro were recently up 4.3% to $24.56.

-By Mary Ellen Lloyd, Dow Jones Newswires; 704-948-9145; maryellen.lloyd@dowjones.com