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): March 24, 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)
Item 5. Other Events
The March 24, 1998 Press Release of the Registrant attached
hereto as EXHIBIT 99 is incorporated herein by reference.
Item 7(c) Exhibits
99 Press Release, dated March 24, 1998, 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: March 24, 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)
HASBRO, INC.
Current Report on Form 8-K
Dated March 24, 1998
Exhibit Index
Exhibit
No. Exhibits
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99 Press Release dated March 24, 1998
EXHIBIT 99
For Immediate Release Contact:
March 24, 1998 News Media Investor Relations
Wayne Charness Renita E. O'Connell
401-727-5983 401-727-5401
HASBRO EXPECTS FIRST QUARTER TO BE BELOW EXPECTATIONS
ANTICIPATES FULL-YEAR DOUBLE-DIGIT EARNINGS GROWTH
Pawtucket, RI (March 24, 1998) -- Hasbro, Inc. (HAS:ASE) today
announced that first quarter results will be below expectations, primarily
due to the impact of recent changes in inventory flow policies at Toys `R
Us, a key customer. However, the Company still expects to achieve double-
digit growth in full-year 1998 earnings per share.
"We have consistently stated that we expect difficult comparisons in
the first half of 1998, which is proving to be the case and has been
compounded by the actions of Toys `R Us," said Alan G. Hassenfeld, Chairman
and Chief Executive Officer. "However, we remain on track for the full
year," Hassenfeld added.
"Last year, our first half results were boosted by the timing of movie
releases of three of our major entertainment properties: Star Wars(TM),
Jurassic Park(R) and Batman(TM). This year, the new inventory flow policies
of Toys `R Us are having a greater relative impact on our first quarter
because our sales to Toys `R Us are expected to become more seasonal, like
sales to most of our other customers," Hassenfeld explained. "We believe
this retail inventory reduction trend will continue into the second
quarter, making the second half of the year, which is already so important,
even more significant. However, in the long run, we believe a stronger
Toys `R Us will be good for our business."
The new inventory policies being implemented by Toys `R Us include a
significant reduction in the absolute level of inventories and a change in
seasonal purchasing patterns. Primarily as a result of the impact of these
changes, Hasbro's revenues in the first quarter could be approximately 15%
below the $555.8 million reported in the first quarter of 1997. The Company
said a decrease in revenues of this magnitude, in this seasonally low-
revenue quarter, has a disproportionate impact on quarterly earnings as
fixed costs continue to be incurred. Consequently, the Company anticipates
earnings per share could be as low as $0.05 compared to $0.20 a year ago.
"Looking ahead to the second half of 1998, we will continue to build
sales and earnings momentum," Hassenfeld continued. "The cost savings
anticipated from the Global Integration and Profit Enhancement program are
on track. In addition, we look forward to the debut of Teletubbies(TM) on
PBS in April, the summer movie release of DreamWorks' `Small Soldiers', and
the fall release of Centipede(R) - the first of our newly-acquired Atari
game properties. We also expect to close our acquisition of Tiger
Electronics early in the second quarter," Hassenfeld added. "We continue
working hard to deliver our plan for this year, and believe it is
achievable under current market conditions."
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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