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Last Updated: Monday, 23 July 2007, 20:41 GMT 21:41 UK
Hasbro falls despite Spider-Man
Spider-Man toy
Film-related merchandise can boost its outlook
US toy firm Hasbro has seen quarterly earnings fall, despite solid sales of Spider-Man and Transformers toys.

The firm's profits for the three months to 1 July hit $4.8m (2.3m), down from $27.1m for the same period in 2006.

One-off costs and a recall of its Easy Bake oven for children - after reports of burning - contributed to the fall.

Hasbro shares fell 5%, with analysts speculating that sales had peaked despite a wider range of Transformers products scheduled for the autumn.

The relaunch of Transformers toys is designed to tie in with a major blockbuster film released worldwide this summer.

While the film was released in the US in June, it has not yet been released in some major markets, including the UK and Japan, and Hasbro expects sales of the toys to climb in the third quarter as children go back to school around the world.

Hasbro - the world's second-largest toy firm - has more than 240 licensees for goods such as mobile phone games and footwear.

Recall

Earnings were dented after Hasbro bore the brunt of $10.4m in costs when it recalled the Easy Bake ovens.

Initially 985,000 ovens were recalled in February when children were said to be getting their fingers caught and burned.

Later, despite attempts to repair the ovens to prevent accidents, Hasbro recalled all front-loading Easy Bake ovens bought after May 2006.


SEE ALSO
Spider-Man lifts Hasbro's profits
23 Apr 07 |  Business
Monopoly boosts Hasbro's profit
23 Oct 06 |  Business
Star Wars force falls for Hasbro
25 Jul 06 |  Business
Star Wars powers Hasbro profits
06 Feb 06 |  Business
Pussycat Dolls' toy plan scrapped
25 May 06 |  Entertainment

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