Hasbro, Inc., a global gaming and entertainment company, reported that it plans to recoup all of its production lost by factory-supported COVID-19 in China.
In addition, the company completed its acquisition of Entertainment One Ltd. (eOne) at the beginning of the first quarter.
Approximately third-party factories in China account for 55% of Hasbro’s manufacturing output.
After operating at lower production levels than planned during the first quarter due to COVID-19, these factories are currently operating at planned capacity for this time of year.
Hasbro: Financial results
China factories are making products across the business, including games.
As production generally peaks during the summer months, Hasbro anticipates regaining lost first quarter production during the second quarter and being well positioned to meet holiday demand.
These projections assume that all production continues to operate in all material aspects without further stops of COVID-19.
Hasbro and other plants
Manufacturing and warehousing partners outside China operated at near-normal levels for much of the first quarter.
As of mid-March and to date, these locations operate at varying levels of productivity, depending on local government and security considerations, with some markets operating at below-normal production levels, and other facilities have been closed for a period of time.
Currently closed facilities include manufacturing in Massachusetts, Texas, and Ireland, primarily for gaming, as well as manufacturing locations in India.
Overall, Hasbro’s global team is utilizing its diverse global supply chain to meet demand from open facilities, existing inventory, and to quickly recoup lost production.
«The situation for COVID-19 is very fluid and, based on our understanding of local government instructions at this time, we expect the closed facilities to reopen during the summer. We will use our full complement of sourcing partners worldwide to ensure a quick recapture of any lost production on priority items,” the company said.
