News
MATTEL: Profits surpass forecast, shares boosted
Katie Roberts Jul 18 2008, 4:32pm
Mattel has announced that quarter two was better than expected and shares are up.
Fresh from a court victory over MGA in the Bratz dolls case, Mattel has posted a better than expected quarterly profit today and a share rise of 12 per cent.
The company's second quarter net income fell 48 per cent to $11.8 million, or 3 cents a share, from $22.8 million or six cents per share in the year earlier period. But the profit still topped analysts' average target of 2 cents a share, according to Reuters Estimates.
Total sales rose 11 per cent to $1.11 billion, increasing 3 per cent in the United States and 15 per cent internationally.
Worldwide Barbie sales fell six per cent.
Toys tied to the hit films Speed Racer and Kung Fu Panda were good earners for the toy giant, which was also aided by strong sales of its Fisher Price brand and American Girl dolls. Action figures based on the new Batman film are expected to provide an added boost to summer sales.
Mattel Chief Executive Bob Eckert sought to ease concerns over consumer spending in the current financial climate: "There's no reason to believe, based on what we have seen so far this year or last Christmas, that the toy business won't continue to perform well."
