Pawtucket, Rhode Island-based toy giant Hasbro reported a whopping 31% increase in net revenue in Q2 2007 compared to the same period last year. Net revenues were up to US$691.4 million from US$527.8 million in Q2 2006. However, net earnings dropped to US$4.8 million compared to US$27.1 million in 2006 due to a US$36.5 million payout to repurchase outstanding Lucas warrants on the company.
Alfred J. Verrecchia, president and CEO of Hasbro, said he was pleased with the performance, particularly the sales growth around Transformers and Littlest Pet Shop properties.
North American sales shot up 24% to US$449.4, fuelled by shipments of Transformers and Marvel products along with brisk sales of Furreal Friends, Littlest Pet Shop, Playskool, Nerf, Operation, Sorry! and Play-Doh lines. While marking an operating profit of US$1.8 million, the North American segment took a US$10.4-million hit on an Easy-Bake Oven product recall announced last week. In contrast, the division generated US$30.4 million in operating profit for the same quarter in 2006.