Hasbro 3Q Profit Rises 8.8 Pct On Cost-cutting

MAE ANDERSON

NEW YORK (AP) — Sales of toys tied to the "G.I. Joe" and "Transformers" movies and cost-cutting drove a third-quarter profit increase for Hasbro. But perhaps more significant are early signs of a pickup in toy sales in recent weeks as the crucial holiday season approaches.

Other strong sellers in the third quarter included Littlest Pet Shop, Play-Doh and Tonka. But overall sales fell 2 percent during the quarter, or up 1 percent excluding the effect of the stronger dollar.

Hasbro said North American sales reflect stronger sales of toys for boys, but revenue was weighed down by weakness in girls, preschool and games and puzzles. In part, weakness in the girls division is due to discontinuing some higher-priced items, like Kota the Triceratops, a robotic dinosaur, which retailed for about $249.

"This year's line is priced more appropriately for today's consumers but did contribute to a decline in 2009 revenue," CEO Brian Goldner said. He added the company also selectively rolled back some of the 3 percent price increase introduced earlier in this year to offset higher costs for commodities such as oil, since raw material prices have moderated.