Hasbro profits tumble 16pc

Toy maker Hasbro's fourth-quarter profit dropped 16 per cent as United States demand for games waned later in the year.

Its earnings still beat Wall St's expectations while revenue was slightly below estimates.

The fourth quarter is a crucial one for toy makers because it includes the holiday season. The period can often make up nearly a third of annual revenue.

President and chief executive Brian Goldner said that international revenue climbed on strength in emerging markets.

But he noted that the company had a difficult comparison to a year ago, which was helped by sales of Transformers and G.I. Joe toys. Hasbro had fewer brands tied to its toys this year.

Some of Hasbro's other brands include Nerf, Playskool and My Little Pony.

The toy maker expects stronger results this year when it will have a full year of The Hub television network as well as its Transformers brand, making a return to the movies with the film Transformers: Dark of the Moon.

Hasbro said yesterday that its net income fell to US$140 million ($182 million), or 99c a share, in the three months to December 26 compared with US$165.6 million, or US$1.09 a share, a year ago.

Revenue dropped 7 per cent to US$1.28 billion from US$1.38 billion a year ago, missing Wall St's average estimate of US$1.31 billion.

For the year, Hasbro said its net income climbed 6 per cent to US$397.8 million, or US$2.74 a share, from US$374.9 million, or US$2.48 a share, in the previous year.

- Bloomberg