Hasbro 3rd-quarter profit rises on tax adjustment

PAWTUCKET, R.I. (AP) _ Hasbro Inc., the nation's second biggest toymaker, said Monday its third-quarter profit climbed 62 percent on higher sales led by its Transformers and Marvel brands and a favorable tax adjustment.

The company easily beat analysts' expectations for the quarter.

Earnings surged to $161.6 million, or 95 cents per share, in the three months ended Sept. 30 compared with $99.6 million, or 58 cents per share, in the year-ago period.

The current period's results included a tax adjustment of $29.6 million, or 17 cents per share.

Excluding the adjustment, earnings were $132 million, or 78 cents per share.

Analysts surveyed by Thomson Financial expected a profit of 71 cents per share. The estimates typically exclude one-time items.

Quarterly revenue rose 17 percent to $1.22 billion from $1.04 billion in the prior year.

Analysts expected sales of $1.14 billion, according to Thomson.

Revenue climbed on shipments of its Transformers and Marvel product lines as well as growth in brands including Furreal Friends and Littlest Pet Shop.

Hasbro reported international segment net revenues of $374 million, an increase of $93.6 million from 2006.

The earnings report was the company's first since the July 3 release of "Transformers," a live-action film based on the popular 1980s cartoon. The movie has made about $700 million worldwide since it was released this summer and about $316 million domestically.

Hasbro is second to Mattel Inc. among U.S. toymakers. Last week, Mattel reported a 1 percent drop in fiscal third-quarter profit, due to the impact of charges, costs and supply chain delays related to multiple product recalls.