SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): December 9, 1997
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HASBRO, INC.
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(Name of Registrant)
RHODE ISLAND 1-6682 05-0155090
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(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
1027 NEWPORT AVE., PAWTUCKET, RHODE ISLAND 02861
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(Address of Principal Executive Offices) (Zip Code)
(401) 431-8697
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(Registrant's Telephone Number)
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Item 5. Other Events
The December 9, 1997 Press Release of the Registrant attached
hereto as EXHIBIT 99 is incorporated herein by reference.
Item 7(c) Exhibits
99 Press Release, dated December 9, 1997, of Hasbro, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HASBRO, INC.
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(Registrant)
Date: December 9, 1997 By: /s/ John T. O'Neill
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John T. O'Neill
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer and
Principal Financial Officer)
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HASBRO, INC.
Current Report on Form 8-K
Dated December 9, 1997
Exhibit Index
Exhibit
No. Exhibits
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99 Press Release dated December 9, 1997
EXHIBIT 99
For Immediate Release Contact: News Media Wayne Charness
December 9, 1997 401-727-5983
Investor Relations Renita E. O'Connell
401-727-5401
HASBRO, INC. ANNOUNCES GLOBAL INTEGRATION AND PROFIT ENHANCEMENT PROGRAM
PROJECTED FIVE YEAR SAVINGS OF $350 MILLION
$500 MILLION SHARE REPURCHASE PLAN ALSO ANNOUNCED
Pawtucket, RI December 9, 1997 -- Hasbro, Inc. (HAS:ASE) today announced
a global integration and profit enhancement program consistent with the
Company's focus on its unique core brand franchises and creating shareholder
value. The program will include changes in three principal areas: a
continued consolidation of the Company's manufacturing operations; the
streamlining of marketing and sales, while exiting from certain
underperforming markets and product lines; and the further leveraging of its
overheads. As a result, the Company will recognize a one-time pre-tax charge
in the fourth quarter of 1997 of approximately $140 million.
The company also announced that the Board of Directors has authorized a
$500 million share repurchase program. It anticipates utilizing this
authorization over the next two to three years.
"As we strive to become a leader in the global children's and family
leisure time and entertainment industry, we must continue to sharpen our
focus on the brands and markets where we have the greatest profit potential,"
said Alan G. Hassenfeld, Hasbro's Chairman and CEO. "This aggressive
program, which includes investing some of the savings back into our business,
positions Hasbro for impressive growth and profitability well into the next
millennium. In addition, the stock buyback is one of the clearest signals we
can send that we believe in our future and our ability to add value for our
shareholders."
"We plan to complete most of these actions over the next few months, and
we expect to achieve approximately $350 million in total savings within five
years, of which at least $40 million should be realized in 1998," Hassenfeld
continued.
In the area of manufacturing operations, the Company announced the
closure of its New Zealand game factory and said that it will close and
consolidate certain other under-utilized facilities in the coming months.
This is in addition to the previously announced closing of its Waddington,
U.K. and El Paso, Texas plants.
"On the marketing front, we will streamline several business units
around the world, consolidate some sales and marketing activities and exit
certain unprofitable regional product lines," Hassenfeld continued.
<PAGE>
Finally, the Company's new global organization, formed last July, is
allowing it to better leverage its resources. "We are all learning how to
work smarter," Hassenfeld said. "For example, we are reducing research and
development costs as well as global commercials production and tooling costs
by focusing on one global effort rather than several regional approaches."
"The one unfortunate part of positioning Hasbro for continued growth and
profitability is the need to eliminate jobs in our global workforce," said
Hassenfeld. These changes will result in the elimination of approximately
2,500 positions worldwide, or about 20% of the Company's workforce. This
number includes the nearly 700 people associated with the Company's El Paso
facility.
Of the $140 million one-time charge, $125 million will be reflected as a
restructuring charge. The additional $15 million relates to product lines
and will be included in our product costs.
"We are convinced that these moves will help Hasbro enter the next
millennium stronger and more focused than at anytime in our history,"
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, of course, 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 including, but not
limited to, market conditions, third party actions or approvals and the
impact of competition, could delay and/or increase the cost of implementation
of and/or alter the Company's actions and reduce actual results. 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.
Hasbro is a worldwide leader in the design, manufacture and marketing of
toys, games, interactive software, puzzles and infant care products. Both
internationally and in the U.S., its Playskool(R), Kenner(R), Tonka(R),
Milton Bradley(R), Parker Brothers(R), Hasbro Interactive(R), OddzOn(R) and
Cap Toy(R) products provide children and families with the highest quality
and most recognizable toys and games in the world.
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