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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): September 28, 1998
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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 September 28, 1998 Press Release of the Registrant attached
hereto as EXHIBIT 99 is incorporated herein by reference.
Item 7(c) Exhibits
99 Press Release, dated September 28, 1998, of Hasbro, Inc.
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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: September 28, 1998 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 September 28, 1998
Exhibit Index
Exhibit
No. Exhibits
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99 Press Release dated September 28, 1998
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EXHIBIT 99
For Immediate Release Contact: Wayne R. Charness (News Media)
September 28, 1998 401-727-5983
Renita A. O'Connell (Investor Relations)
401-727-5401
TOYS `R US TO IMPACT HASBRO, INC. SECOND HALF RESULTS
Pawtucket, RI (September 28, 1998) - Hasbro, Inc. (ASE:HAS) announced
today that second half 1998 results are expected to be above 1997 but will
be lower than expectations, primarily due to the ongoing and recently
accelerated impact of changes in inventory flow policies and store closings
at Toys `R Us, a key global customer. However, the Company remains
committed to 15% earnings per share growth over the long-term, including
1999.
In a separate news release, Hasbro today announced a definitive
agreement to acquire Galoob Toys, Inc. (NYSE:GAL), an international toy
manufacturer whose leading brands include Micro Machines(R) miniature-scale
boys' toys, Star Wars(TM) small-scale figures and vehicles, Spice Girls(TM)
fashion dolls, and Pound Puppies(R) mini-dolls. Hasbro said it expects the
acquisition will be modestly dilutive to earnings in 1998 and accretive
beginning in 1999.
"Coming into 1998, we expected difficult comparisons absent the major
in-theater support we benefited from in 1997," said Alan G. Hassenfeld,
Chairman and Chief Executive Officer. "This has been compounded by the new
inventory flow policies of Toys `R Us, which reduced our first half
revenues by approximately $125 million."
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"In light of Toys `R Us' most recent announcement of accelerated
inventory reduction plans and store closings, it now appears we will not be
able to make up the lost first half revenue," Hassenfeld continued. "In
fact, for the year, our sales to Toys `R Us could be down as much as $200
million worldwide. As a result, we now anticipate earnings per share could
be approximately $0.55 in the third quarter compared to $0.57 a year ago.
For the year, earnings per share could be relatively flat with 1997
excluding $140 million of one-time pre-tax charges in 1997 to implement the
Global Integration and Profit Enhancement Program." These 1998 expectations
are prior to a one-time charge in the third quarter relating to the
expensing of purchased in process research and development of MicroProse.
Hassenfeld added, "Following our recent meetings with Toys `R Us, we
continue to feel that they are making aggressive moves to ensure their
future health and that of the industry."
The Company said that many of its products are performing well at
retail. Teletubbies(TM) sales continue to exceed expectations. Sales
increases also continue in other brands and product lines including Hasbro
Interactive(TM), Action Man(R), Beast Wars(TM) Transformers(TM), Winner's
Circle(TM) and hand-held electronic games including Tiger(TM) Electronics.
Just shipping are the much anticipated CD-ROM version of Centipede(R) and
Furby, Tiger's new animatronic pet.
"Looking ahead to 1999, we look forward to an exciting product line-
up, led by the incomparable Star Wars(TM) Episode One, with Hasbro and
Galoob teaming up with the Power of the Force. Other new products in 1999
include an expanded range of Pokemon(TM) and Tiger(TM) Electronics
products, Animorphs(TM), several new PC-based games from Hasbro
Interactive(TM) and newly-acquired MicroProse, and more," noted Hassenfeld.
"In addition, our strategy of extending our key brands into new
entertainment formats with partners - such as the Monopoly(R) slot machines
currently being rolled out - will contribute directly to the bottom line.
We are also on track to realize planned incremental cost savings from the
Global Integration and Profit Enhancement Program next year, and our recent
acquisitions are expected to be accretive, helping us get back on track to
deliver 15% earnings growth," Hassenfeld concluded.
Hasbro, Inc. is a worldwide leader in the design, manufacture and
marketing of toys, games, interactive software, puzzles and infant
products. Both internationally and in the U.S., its Playskool(R),
Kenner(R), Tonka(R), OddzOn(R), Super Soaker(R), Milton Bradley(R), Parker
Brothers(R), Tiger(TM) and Hasbro Interactive(TM) products, provide
children and families with the highest quality and most recognizable toys
and games in the world.
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Hasbro: 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 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.
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