Hasbro Establishes a Worldwide Center of Excellence for Games in Rhode Island
PAWTUCKET, R.I.--(BUSINESS WIRE)--
Hasbro,
Inc. (NASDAQ: HAS) has announced it is creating a Center of
Excellence for Hasbro Games in Rhode Island. As part of this, it is
reorganizing its global games business and moving its games marketing
and games development employees from East Longmeadow, MA to Rhode Island.
"Hasbro has the strongest portfolio of games brands in the industry and
this is an important move to accelerate our re-imagination of games.
However, it is always difficult to make changes that affect our people,"
said Brian Goldner, President and CEO. "We are committed to continuously
re-inventing this business and growing it for the long term. This
includes maintaining our leadership position in face-to-face board
gaming, while also more effectively competing in the broader world of
gaming across all platforms."
The Center of Excellence for Games will build on Hasbro's strategy of
re-imagining, re-inventing and re-igniting its core brands. The group
will identify key games brands for new play experiences and development,
while focusing its efforts and workforce on initiatives across multiple
platforms in both traditional and digital gaming.
Hasbro expects to relocate approximately 70 employees with a reduction
in force of approximately 75 by the end of the year. The impacted
employees will be offered a severance package, benefits continuation and
outplacement services. Hasbro factory and certain corporate service
employees will not be affected by this move.
Hasbro will communicate the estimated cost of these actions in July when
the Company reports second quarter results. However, the Company's
guidance for 2011 remains in place as the Company continues to believe
it will grow revenues and earnings per share, including costs associated
with these actions.
About Hasbro
Hasbro,
Inc. (NASDAQ: HAS) is a branded play company providing children and
families around the world with a wide-range of immersive entertainment
offerings based on the Company's world class brand portfolio. From toys
and games, to television programming, motion pictures, video games and a
comprehensive licensing program, Hasbro strives to delight its customers
through the strategic leveraging of well-known and beloved brands such
as TRANSFORMERS, LITTLEST PET SHOP, NERF, PLAYSKOOL, MY LITTLE PONY,
G.I. JOE, MAGIC: THE GATHERING and MONOPOLY. The HUB, Hasbro's
multi-platform joint venture with Discovery Communications (NASDAQ:
DISCA, DISCB, DISCK) launched on October 10, 2010. The online home of
The HUB is www.hubworld.com.
The HUB logo and name are trademarks of Hub Television Networks, LLC. ©
2011 Hasbro, Inc. All Rights Reserved.
Certain statements contained in this release contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements include expectations concerning the
Company's potential performance in 2011, including with respect to its
revenues and earnings per share, and the Company's ability to achieve
its other financial and business goals and may be identified by the use
of forward-looking words or phrases. The Company's actual actions or
results may differ materially from those expected or anticipated in the
forward-looking statements due to both known and unknown risks and
uncertainties. Specific factors that might cause such a difference
include, but are not limited to: (i) the Company's ability to design,
manufacture, source and ship new and continuing products on a timely and
cost-effective basis, as well as interest in and purchase of those
products by retail customers and consumers in quantities and at prices
that will be sufficient to profitably recover the Company's development,
manufacturing, marketing, royalty and other costs; (ii) global economic
conditions, including recessions, credit crises or other economic shocks
or downturns which can negatively impact the retail and/or credit
markets, the financial health of the Company's retail customers and
consumers, and consumer and business confidence, and which can result in
lower employment levels, less consumer disposable income, and lower
consumer spending, including lower spending on purchases of the
Company's products; (iii) other factors which can lower discretionary
consumer spending, such as higher costs for fuel and food, drops in the
value of homes or other consumer assets, and high levels of consumer
debt; (iv) other economic and public health conditions in the markets in
which the Company and its customers and suppliers operate which impact
the Company's ability and cost to manufacture and deliver products, such
as higher fuel and other commodity prices, higher labor costs, higher
transportation costs, outbreaks of disease which affect public health
and the movement of people and goods, and other factors, including
government regulations, which can create potential manufacturing and
transportation delays or impact costs; (v) currency fluctuations,
including movements in foreign exchange rates, which can lower the
Company's net revenues and earnings, and significantly impact the
Company's costs; (vi) the concentration of the Company's customers,
potentially increasing the negative impact to the Company of
difficulties experienced by any of the Company's customers or changes by
the Company's customers in their purchasing or selling patterns; (vii)
greater than expected costs, or unexpected delays or difficulties,
associated with the Company's investment in its joint venture with
Discovery Communications, LLC, the rebranding of the joint venture
network, development of Hasbro Studios, and the creation of new content
to appear on the network and elsewhere; (viii) greater than expected
costs or unexpected delays associated with the creation of the Center of
Excellence for Hasbro Games; (ix) consumer interest in and acceptance of
the joint venture network, and programming created by Hasbro Studios,
and other factors impacting the financial performance of the joint
venture and Hasbro Studios; (x) the inventory policies of the Company's
retail customers, including the 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; (xi) work stoppages, slowdowns or
strikes, which may impact the Company's ability to manufacture or
deliver product in a timely and cost-effective manner; (xii) the
bankruptcy or other lack of success of one of the Company's significant
retailers which could negatively impact the Company's revenues or bad
debt exposure; (xiii) the impact of competition on revenues, margins and
other aspects of the Company's business, including the ability to
secure, maintain and renew popular licenses and the ability to attract
and retain talented employees in a competitive environment; (xiv)
concentration of manufacturing for many of the Company's products in the
People's Republic of China and the associated impact to the Company of
public health conditions and other factors affecting social and economic
activity in China, affecting the movement of products into and out of
China, and impacting the cost of producing products in China and
exporting them to other countries; (xv) the risk of product recalls or
product liability suits and costs associated with product safety
regulations; (xvi) other market conditions, third party actions or
approvals and the impact of competition which could reduce demand for
the Company's products or delay or increase the cost of implementation
of the Company's programs or alter the Company's actions and reduce
actual results; (xvii) the risk that anticipated benefits of
acquisitions may not occur or be delayed or reduced in their
realization; and (xviii) other risks and uncertainties as may be
detailed from time to time in the Company's public announcements and SEC
filings. 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, Inc.
Investor Relations
Debbie Hancock,
401-727-5401
or
News Media
Wayne S. Charness,
401-727-5983
Source: Hasbro, Inc.
News Provided by Acquire Media
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