Hasbro May Miss 3rd-Quarter Profit Estimates

Hasbro Inc.’s earnings in the third quarter may decline more than expected because of sluggish sales, a weak euro and rising costs for raw materials, analysts and investors said. Profit is forecast to fall to 32 cents a share, the average estimate of analysts polled by First Call/Thomson Financial, from 43 cents a year earlier. The world’s No. 2 toy maker said in July that the second half will be difficult as sales of Pokemon, Furby and Star Wars toys decline. A global shortage of electronic parts also may delay product introductions. In the third quarter, Hasbro also may be hurt by rising prices for oil and resin, used for the plastic in toys, analysts said. A 19% decline in the euro in the last year also may reduce the amount of Hasbro’s sales in Europe. Lower sales and a weak euro pushed Hasbro’s second-quarter profit down 80%. Shares of the maker of Monopoly games, Tonka trucks and Play-Doh have plunged 69% from a high of $37 in May 1999. The Pawtucket, R.I.-based company’s stock fell $1.56 to close at $10.06 on the NYSE.