Despite lower sales of Transformers and G.I. Joe, Hasbro 2Q profit rises due to spending cuts

Hasbro cuts spending, 2Q profit rises 11 percent

PAWTUCKET, R.I. — Hasbro Inc. says its second-quarter profit rose 11 percent as its spending cuts outpaced the drop in sales of Transformers and G.I. Joe toys.

Hasbro says its profit grew to $43.6 million, or 29 cents per share, in the quarter that ended June 27. That’s up from $39.3 million, or 26 cents per share, a year earlier.

Hasbro says royalty payments fell during the quarter, but sales costs and advertising spending also decreased.

Revenue fell 7 percent to $737.8 million from $792.2 million.

Analysts surveyed by Thomson Reuters on average expected earnings of 24 cents per share on revenue of $748.3 million.

Sales of boys’ items, with tie-ins to the Transformers and G.I. Joe movies, sank 34 percent.