Hasbro reported financial results for the third quarter 2015. Net revenues were $1.47 billion, flat with $1.47 billion in 2014.
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Absent a negative $132.4 million impact from foreign exchange, net revenues increased 9%.
Net earnings for the third quarter 2015 were $207.6 million, or $1.64 per diluted share, compared to $180.5 million, or $1.40 per diluted share, in 2014. Adjusted net earnings for the third quarter 2015 were $200.5 million, or $1.58 per diluted share.
These exclude a pre-tax gain of $9.9 million, or $0.06 per diluted share, from the sale of the company's manufacturing operations in East Longmeadow, MA and Waterford, Ireland.
This compared to adjusted net earnings for the third quarter 2014 of $187.8 million, or $1.46 per diluted share, which excluded a pre-tax charge of $11.6 million, or $0.06 per diluted share, related to the restructuring of the company's investment in its television joint venture.
U.S. and Canada Segment net revenues increased 5% to $803.8 million compared to $764.3 million in 2014. The Segment's results reflect growth in the Boys and Preschool categories, which was partially offset by a decline in the Games and Girls categories.
Absent the 1% or $5.4 million negative impact of foreign exchange, the U.S. and Canada segment increased 6%. The U.S. and Canada Segment reported operating profit of $187.1 million, up 10% compared to $169.9 million in 2014.
International Segment net revenues were $612.6 million compared to $649.3 million in 2014. Growth in the Boys and Preschool categories were more than offset by declines in the Games and Girls categories.
On a regional basis, the negative impact of foreign currency resulted in revenue declines in Europe, Latin America and Asia Pacific. Emerging markets revenues declined 15% in the quarter. Excluding an unfavorable $126.7 million impact of foreign exchange, net revenues in the International Segment grew 14%, increasing 15% in Europe, 14% in Latin America and 9% in Asia Pacific.
Emerging markets increased approximately 12% absent the impact of foreign exchange. Foreign exchange also negatively impacted operating profit.
As reported, International Segment operating profit of $114.2 million was down 2%, compared to $116.5 million in 2014. Excluding the negative impact of foreign exchange, operating profit was $133.0 million, a 14% increase versus 2014. ■