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Article #596 (635 is last):
From: Michael Current 
Subject: Hasbro Second Quarter 1998 Results
Posted-By: xx004 (Atari SIG)
Date: Thu Aug 27 21:46:33 1998

Hasbro Second Quarter 1998 Results in Line With Expectations

PAWTUCKET, R.I.--(BUSINESS WIRE)--July 16, 1998--Hasbro, Inc. (ASE:HAS)
today reported second quarter results consistent with expectations. Net
earnings and diluted earnings per share were $5.5 million and $0.04,
respectively, compared to $13.0 million and $0.10, respectively, in the
second quarter of 1997.

Worldwide net revenues in local currencies were essentially unchanged from
the second quarter of 1997. The acquisition of the operating assets of Tiger
Electronics, on April 1, 1998, added approximately $40 million to net
revenues. This increase was offset by ongoing changes in inventory flow
policies at Toys `R Us, coupled with year-over-year differences in the
timing of movie releases of some of the Company's major entertainment
properties. In addition, the adverse impact of the stronger U.S. dollar
reduced revenues by approximately $9 million, resulting in reported revenues
of $572.1 million, compared to $583.9 million reported last year.

For the first half of 1998, revenues were $1.055 billion, compared to $1.140
billion a year ago. Net earnings and diluted earnings per share in the first
half were $13.2 million and $0.10, respectively, compared to $38.7 million
and $0.30 last year.

``Across the board, our product portfolio performed as expected,'' said Alan
G. Hassenfeld, Chairman and Chief Executive Officer. ``Last year's second
quarter results benefited from the movie releases of THE LOST WORLD:
JURASSIC PARK in May and BATMAN AND ROBIN in June, as well as the re-release
of the STAR WARS TRILOGY. We expected a difficult comparison in the first
half of this year, which has been compounded by the significant reduction in
inventories and increased seasonality of purchasing patterns announced by
Toys `R Us in the first quarter,'' Hassenfeld explained.

Hassenfeld continued, ``On the plus side were sales from newly-acquired
Tiger Electronics, as well as TELETUBBIES, introduced in May, and SMALL
SOLDIERS, which began appearing at retail in June in anticipation of the
July movie release. In addition, sales continue increasing in product lines
SUPER SOAKER line of water toys. Internationally, growth occurred in Latin
America and certain European markets, notably Italy and France. Our lower
earnings in this seasonally light quarter primarily reflected the
anticipated dilution from interest expense and goodwill amortization
associated with our Tiger acquisition,'' Hassenfeld added.

``We have been very active on the financial front,'' continued Hassenfeld.
``In the second quarter, we invested $55 million to buy back 1.5 million
shares of our common stock, bringing the first half total investment to $108
million to buy back 3.0 million shares. Also, on Tuesday, we successfully
priced a $300 million long-term debt offering,'' said Hassenfeld. ``This was
our first long-term debt issue since 1991, and it was significantly
oversubscribed,'' Hassenfeld added.

``In the increasingly important second half, we will continue building sales
and earnings momentum in several product lines. These include a broad range
of offerings based on Dreamworks' SMALL SOLDIERS, which was off to a good
start at the box office last weekend, the nationwide rollout of Teletubbies,
the fall release of our new CD-ROM version of the ATARI classic game -
CENTIPEDE, and Tiger Electronics' FURBY - an electronic interactive pet. We
also anticipate continued cost savings from the Global Integration and
Profit Enhancement Program,'' Hassenfeld concluded.

Certain statements contained in this release contain ``forward looking
statements'' within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are inherently subject to known
and unknown risks and uncertainties. The Company's actual actions or results
may differ materially from those expected or anticipated in the
forward-looking statements. Specific factors that might cause such a
difference include, but are not limited to, the timely manufacture and
shipping by the Company of new and continuing products and their acceptance
by customers and consumers in a competitive product environment; economic
conditions and currency fluctuations in the various markets in which the
Company operates throughout the world; the continuing trend of increased
concentration of the Company's revenues in the second half and fourth
quarter of the year, together with increased reliance by retailers on quick
response inventory management techniques, which increases the risk of
underproduction of popular items, overproduction of less popular items and
failure to achieve tight and compressed shipping schedules; the impact of
competition on revenues, margins and other aspects of the Company's
business; third party actions or approvals that could delay, modify or
increase the cost of implementation of, the Company's Global Integration and
Profit Enhancement program; and the risk that anticipated benefits of
acquisitions may not occur or be delayed or reduced in their realization.
The Company undertakes no obligation to make any revisions to the
forward-looking statements contained in this release or to update them to
reflect events or circumstances occurring after the date of this release.



(Thousands of Dollars and Shares Except Per Share Data)

                           Quarter Ended           Six Months Ended
                         June 28,   June 29,    June 28,      June 29,
                          1998       1997         1998         1997

Net Revenues            $572,057   $583,886   $1,054,877   $1,139,670
Cost of Sales            247,095    252,917      451,407      488,288

Gross Profit             324,962    330,969      603,470      651,382
Amortization              15,880     11,194       30,023       21,226
Royalties, Research
 and Development          82,129     87,864      149,465      151,756
Advertising               73,213     66,908      128,970      138,210
Selling, Distribution
 and Administration      141,479    142,289      276,728      277,070

Operating Profit          12,261     22,714       18,284       63,120
Interest Expense           6,416      5,493        8,728        9,923
Other (Income)
 Expense, Net             (2,417)    (3,062)     (10,514)      (7,233)

Earnings Before
 Income Taxes              8,262     20,283       20,070       60,430
Income Taxes               2,809      7,302        6,824       21,755

Net Earnings            $  5,453   $ 12,981   $   13,246   $   38,675

Per Common Share
  Net Earnings
    Basic               $    .04   $    .10   $      .10   $      .30
    Diluted             $    .04   $    .10   $      .10   $      .30

  Cash Dividends
   Declared             $    .08   $    .08   $      .16   $      .16

Weighted Average
 Number of Shares
   Basic                 132,560    127,847      132,835      128,223
   Diluted               138,228    137,606      138,218      138,158

                                                June 28,      June 29,
(Thousands of Dollars)                            1998          1997


Cash and Temporary Investments                 $  180,595   $   82,510
Accounts Receivable, Net                          600,254      714,212
Inventories                                       331,638      368,221
Other                                             223,740      188,913

Total Current Assets                            1,336,227    1,353,856
Property, Plant and Equipment, Net                281,327      296,139
Other Assets                                    1,410,211      996,800

Total Assets                                   $3,027,765   $2,646,795


Short-term Borrowings                          $  527,259   $  314,288
Payables and Accrued Liabilities                  676,860      517,230

Total Current Liabilities                       1,204,119      831,518
Long-term Debt                                       --        149,040
Deferred Liabilities                               77,886       67,206

Total Liabilities                               1,282,005    1,047,764

Total Shareholders' Equity                      1,745,760    1,599,031

Total Liabilities and Shareholders' Equity     $3,027,765   $2,646,795


     Hasbro, Inc.
     John T. O'Neill/Renita E. O'Connell, 401-727-5600

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