Mattel 3rd-quarter earnings decline 3 percent

[October 16, 2009]  EL SEGUNDO, California (AP) -- Toy maker Mattel Inc.'s third-quarter profit declined 3 percent because of a tough economy that is still dampening demand for toys.

Chief Executive Robert A. Eckert said Friday that revenue "continues to be challenging this year" because of the economy, foreign exchange rates and a lack of toys tied to hot movies and other entertainment. The company said it has continued to cut costs to maintain profit margins.

Profit for the quarter ended Sept. 30 declined to $229.8 million, or 63 cents per share, compared with $238.1 million, or 65 cents per share, a year ago.

Revenue declined 8 percent to $1.79 billion, partly because of foreign exchange rates.

Sales of Barbie declined 8 percent, while Fisher Price toy sales slipped 6 percent.

Sales of Hot Wheels fared better, rising 9 percent, as did sales of American Girl toys, which rose 4 percent.

Analysts polled by Thomson Reuters predicted earnings of 63 cents per share and revenue of $1.78 billion.

Mattel shares closed at $19.58 Thursday.

[Associated Press]

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