Hasbro: Shipping-Container Shortages An Area Of Concern
July 19 2010 - 11:05AM
Dow Jones News
Hasbro Inc. (HAS) said it's comfortable with the current
inventory levels of its retail customers, but that tight shipping
capacity and shortages of shipping containers are concerns.
Chief Operating Officer David Hargreaves said during a
conference call Monday that the toy maker has arranged additional
containers and is encouraging retailers to take inventory "earlier
rather than later to avoid problems."
"We're doing everything we can to avoid the problems, but I
think it is something that you're going to read about in the papers
in terms of container shortages and shipping capacity," he
said.
Retailers import a lot of their own private-label products and
nontoy items, and they seem to understand the situation, Hargreaves
said. As a result, he doesn't expect it to be a "material
issue."
Meanwhile, Hasbro executives said they are comfortable with the
inventories of their retail customers and said several input costs
appear to have peaked. Resin and paperboard costs have actually
fallen from first-quarter levels, they said.
Hargreaves said Hasbro's shipments into retail are lower
year-to-date, but that sell-through at retailers is up. Retail
sales of toys were stronger through Easter than since then, though
they have remained positive recently, President and Chief Executive
Brian Goldner said.
-By Mary Ellen Lloyd, Dow Jones Newswires, 704-948-9145;
maryellen.lloyd@dowjones.com