This probably important enough Brian, that I'm printing the article....Wonder how this will effect things...?
Hasbro to Miss Estimates, Sells Interactive, Games.com Units
By Ilan Tsapovski
Editorial Assistant
12/6/00 6:27 PM ET
Hasbro (HAS:NYSE - news) expects earnings for the fourth quarter and full year to fall below analysts' expectations and set plans to sell its Hasbro Interactive and Games.com units.
The Pawtucket, R.I., toy maker expects fiscal 2000 earnings of "at best, break-even" with the potential for a loss of 10 cents to 20 cents a share. Analysts expect the company to earn 23 cents a share in the fourth quarter and 43 cents a share for the year, according to First Call/Thomson Financial.
The company didn't provide an estimate for the fourth quarter.
Hasbro expects earnings before interest, taxes, depreciation and amortization for 2000 of about $320 million to $370 million. Earnings and EBITDA estimates exclude $140 million to $170 million of pretax restructuring and other charges announced in October, as well as a potential write-down associated with the sale of Hasbro Interactive and Games.com.
The company said "the reduced expectations can be attributed in large part to the decline in worldwide revenue of trading card games." As a result of the earnings shortfall, Hasbro cut its quarterly dividend to 3 cents from 6 cents. Additionally, the company said it now plans to cut about 750 jobs, as opposed to the 500 to 550 staff reductions originally planned.
Hasbro plans to sell Hasbro Interactive and Games.com to Infogrames Entertainment of France for $100 million. Hasbro will receive $95 million in Infogrames Entertainment securities and $5 million in cash. Infogrames Inc. (IFGM:Nasdaq - news) is a unit of Infogrames Entertainment that serves as the company's headquarters in North America. |
