Hasbro’s revenue in the first quarter was hurt by slack demand for its girl’s toys, including Furreal Friends fuzzy animatronic animals.
EAST LONGMEADOW – Two days after posting lowered earnings for the first quarter of 2012, Hasbro Games reportedly will not recall approximately 150 union employees who had been out on temporary layoffs.
Hasbro Inc. posted a first-quarter loss on Monday, weighed down by costs related to staff cuts and weak sales of “My Littlest Pet Shop” miniatures and other girl’s toys. Results from the maker of Monopoly and Transformers missed Wall Street estimates, and its shares fell over 5 percent.
According to the quarterly report, revenue also slumped, sliding 3.4 percent to $648.9 million compared to the first quarter a year ago. International markets increased 14 percent from a year ago, but sales in the United States and Canada, however, dove 16 percent to $329 million.
The first quarter is typically quiet for toy makers, especially compared with the run-up to the crucial winter holiday shopping season. But first-quarter results do indicate how willing Americans are to spend on non-essential items. So far, two of the biggest toy makers, Hasbro and its rival Mattel, have posted disappointing first-quarter results.
Hasbro’s revenue in the first quarter was hurt by slack demand for its girl’s toys, including Furreal Friends fuzzy animatronic animals. But in a call with analysts, CEO Brian Goldner said first-quarter results were in line with the company’s plan, and it estimates more of its revenue will come during the second half of the year.
WWLP-TV, Channell 22 is reporting the company will not bring back some 150 seasonal employees who had been laid off in the fall. The employees received notification earlier this week that their layoffs would now be considered permanent.
The station posted a statement issued by the company, which said the East Longmeadow facility “has been operating very efficiently” with a workforce of about 330 unionized employees. “Hasbro expects this facility will continue to operate at this level of employment, which means that we will not be recalling certain employees who have been out on temporary layoff.”