NEW YORK – Toymaker Hasbro Inc. (HAS) said on Wednesday its full-year net revenue would drop and forecast earnings well below Wall Street expectations, citing a tough retail environment and disappointing performance domestically.
Hasbro also said it would exceed its goal of delivering cash flow from operations, less capital expenditures, or free cash flow of $250 million. The company plans to end the year with significant cash, net of debt, which it has not done since 1997, Chief Financial Officer David Hargreaves said in a statement.
The company, whose brands include Playskool (search), Tonka (search) and Milton Bradley (search), expects 2004 earnings per share to be about flat with the 2003 profit of 94 cents, which was restated due to a required accounting change. Analysts have a mean target of $1.22 per share, according to Reuters Estimates.
Net revenue should be about $3 billion, down from 2003's $3.1 billion, Hasbro said. Analysts, on average, forecast $3.078 billion.
Shares of Pawtucket, R.I.-based Hasbro were up 23 cents, or 1.2 percent, at $18.90 on the New York Stock Exchange (search).
The company took actions in the fourth quarter, primarily in U.S. Toys, to cut expenses going forward, Chief Executive Alfred Verrecchia said in a statement.
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