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Article #601 (635 is last):
From: Michael Current 
Subject: Hasbro Reports Record Third Quarter Revenues
Posted-By: xx004 (Atari SIG)
Date: Sat Nov 21 17:38:55 1998

PAWTUCKET, R.I.--(BUSINESS WIRE)--Oct. 15, 1998--Hasbro, Inc. (ASE:HAS)
today reported third quarter results consistent with its September 28, 1998
announcement regarding the impact of ongoing and recently accelerated
changes in inventory flow policies at Toys `R Us. ``We are very pleased to
report record third quarter revenues despite lower sales to this key
customer,'' said Alan G. Hassenfeld, Chairman and Chief Executive Officer.

Reported net revenues reached $945.5 million, or approximately 3% above the
$915.5 million reported last year, in part due to the acquisition of Tiger
Electronics in April and increased sales at Hasbro Interactive. As
previously announced, the Company took a one-time pre-tax charge to
write-off acquired in-process research and development of MicroProse, Inc.,
which was acquired for approximately $70 million in September 1998. Prior to
this $20.0 million pre-tax charge ($13.6 million after tax), net earnings
and diluted earnings per share were $74.9 million and $0.55, respectively,
compared to $77.4 million and $0.57, respectively, a year ago. Including the
charge, net earnings were $61.3 million and diluted earnings per share were

``In addition to revenue growth this quarter, we are also very pleased about
two acquisitions that will fuel future growth in revenue and earnings well
into the next century. The acquisition of MicroProse significantly enhances
Hasbro Interactive in three key strategic growth areas going forward: brands
and content, R&D assets, and European distribution,'' Hassenfeld added. ``In
addition, the pending acquisition of Galoob Toys, with its highly successful
MICRO MACHINES and STAR WARS small-scale figures and vehicles, will be a
tremendous addition to our rich brand portfolio,'' Hassenfeld continued.

For the first nine months of 1998, revenues were $2.0 billion compared to
$2.1 billion in 1997. Excluding the one-time charge, net earnings and
diluted earnings per share were $88.2 million and $0.64, respectively,
compared to $116.1 million and $0.87 a year ago. Including the charge, net
earnings were $74.6 million and diluted earnings per share were $0.54.

During the third quarter, the Company invested $65 million to repurchase 1.8
million shares. Under the $500 million share repurchase authorization
announced on December 9, 1997, the Company has invested approximately $185
million to repurchase 5.1 million shares.

``Looking ahead to the fourth quarter, we continue building sales and
earnings momentum in several product lines,'' Hassenfeld noted. ``These
include Tiger Electronics' FURBY - an electronic interactive pet being
introduced nationwide to great acclaim; TELETUBBIES; new releases from
Hasbro Interactive and MicroProse - including our CD-ROM version of the
ATARI game classic, CENTIPEDE, and our first Nintendo 64 game title, GLOVER;
as well as a range of POKEMON offerings. Building excitement for 1999, we
are shipping the first new product from STAR WARS Episode One - a MACE WINDU
exclusive mail-in figure offer and a STAP vehicle with BATTLE DROID figure.
In 1999, we look forward to a tremendous product line-up, led by STAR WARS,
with Hasbro and Galoob teaming up with the Power of the Force. We are also
on track to realize planned incremental cost savings from the Global
Integration and Profit Enhancement Program next year, enabling us to
continue to add value for our shareholders,'' 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 inventory policies of retailers,
including 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.




                                Quarter Ended      Nine Months Ended

                             Sept. 27,  Sept. 28,  Sept. 27, Sept. 28,
(Thousands of Dollars and
Shares Except Per Share Data)  1998       1997      1998      1997

Net Revenues                $945,498   $915,533 $2,000,375 $2,055,203
Cost of Sales                402,369    403,027    853,776    891,315

Gross Profit                 543,129    512,506  1,146,599  1,163,888
Amortization                  19,275     11,741     49,298     32,967
Royalties, Research and
 Development                 113,755    102,583    263,220    254,339
Advertising                  128,053    116,208    257,023    254,418
Selling, Distribution and
 Administration              162,705    156,215    439,433    433,285
Acquired Research and
 Development                  20,000       --       20,000       --

Operating Profit              99,341    125,759    117,625    188,879
Interest Expense              11,308      9,197     20,036     19,120
Other (Income) Expense, Net   (1,568)     1,121    (12,082)    (6,112)

Earnings Before Income Taxes  89,601    115,441    109,671    175,871
Income Taxes                  28,271     38,041     35,095     59,796

Net Earnings                 $61,330    $77,400    $74,576   $116,075

Per Common Share
  Net Earnings
    Basic                       $.47       $.61       $.56       $.91
    Diluted                     $.45       $.57       $.54       $.87

  Cash Dividends Declared       $.08       $.08       $.24       $.24

Weighted Average Number of
    Basic                    131,368    126,922    132,346    127,789
    Diluted                  136,375    137,103    137,604    137,806



(Thousands of Dollars)                         Sept. 27,    Sept. 28,
                                                1998          1997

Cash and Temporary Investments              $   176,486   $   80,030
Accounts Receivable, Net                      1,030,751    1,153,910
Inventories                                     383,809      347,779
Other                                           336,261      175,534

Total Current Assets                          1,927,307    1,757,253
Property, Plant and Equipment, Net              287,872      279,916
Other Assets                                  1,461,125      986,782

Total Assets                                  3,676,304   $3,023,951


Short-term Borrowings                           507,596   $  462,894
Payables and Accrued Liabilities              1,029,906      708,278

Total Current Liabilities                     1,537,502    1,171,172
Long-term Debt                                  300,000      148,751
Deferred Liabilities                             80,010       68,924

Total Liabilities                             1,917,512    1,388,847

Total Shareholders' Equity                    1,758,792    1,635,104

Total Liabilities and Shareholders' Equity    3,676,304   $3,023,951


     Hasbro, Inc.
     John T. O'Neill, 401-727-5600
     Renita E. O'Connell, 401-727-5401

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