Holiday toy sales boost Mattel 4Q profit

[January 29, 2010]  EL SEGUNDO, Calif. (AP) -- Barbie maker Mattel Inc. said Friday that better sales of its classic toys over the holidays and cost-cutting helped its fourth-quarter profit rise 86 percent.

The No. 1 U.S. toy maker said sales of Barbie products rose 12 percent and Hot Wheels items were up 16 percent around the globe.

Mattel says it earned $328.4 million, or 89 cents per share. That compares with a profit of $176.4 million, or 49 per share, during the same period last year. Meanwhile, sales climbed 1 percent to $1.96 billion.

Analysts surveyed by Thomson Reuters expected the company to earn 68 cents on revenue of $1.98 billion.

The holidays are crucial to toy makers because they can make up to half of their annual sales during the quarter.

For the full year, Mattel earned $528.7 million, or $1.45 per share. That's a 39 percent increase from its 2008 profit of $379.6 million, $1.04 per share.

Full-year sales slipped 8 percent to $5.43 billion.

Mattel is based in El, Segundo, Calif. Its shares closed Thursday at $20.04.

[Associated Press]

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