Mattel 2Q net income more than doubles

[July 16, 2010]  NEW YORK (AP) -- Mattel Inc.'s second-quarter net income more than doubled, boosted by sales of Barbie and toys tied into the Pixar smash "Toy Story 3," the toymaker said Friday.

The maker of Barbie and Hot Wheels says net income rose to $51.6 million, or 14 cents per share, from $21.5 million, or 6 cents per share last year. That just missed analyst expectations for net income of 15 cents per share, according to a poll by Thomson Reuters.

Mattel's revenue rose 13 percent to $1.02 billion, matching analyst expectations. A year ago revenue was $898.2 million.

CEO Robert A. Eckert said sales of Barbie and Hot Wheels were strong and said toys tied into "Toy Story 3" made a "stellar contribution," to the quarter.

"With the all important second-half of the year ahead of us, I am encouraged by the strong momentum of our product line," he said.

Mattel, based in El Segundo, Calif., has experienced a resurgence in strength in its classic brands such as Barbie and Hot Wheels, which reported revenue rose 6 percent and 11 percent, respectively. Its new licenses with Thomas and Friends and World Wrestling Entertainment have been strong as well. Mattel also just introduced a new product line, "Monster High."

Still, as the company heads into the second half of the year, which includes the crucial holiday season, it is facing rising costs for commodities like oil and is dealing with minimum wage pressure in China. Mattel has said it will raise prices if necessary.

In the second quarter, revenue rose 17 percent in the U.S. and 9 percent internationally.

Worldwide gross revenue for Barbie rose 6 percent and Hot Wheels rose 11 percent.

Sales of Mattel's girls and boys brands rose 21 percent to $653.2 million. In addition to Barbie, Disney Princess dolls were the strong sellers in the girls category.

Revenue from the company's Wheels business, which includes Hot Wheels, Matchbox and Tyco R/C, rose 5 percent.

Entertainment revenue, which includes its Radica line and games and puzzles, jumped 60 percent, spurred by "Toy Story 3" toys and World Wrestling Entertainment products.

Fisher-Price revenue rose 4 percent to $385.2 million. American Girl brand revenue fell 4 percent to $58.9 million, hurt by the earlier Easter and a year-ago doll introduction. This year, American Girl didn't introduce a new doll in the period.

Chief rival Hasbro reports second-quarter results on Monday.

[Associated Press; By MAE ANDERSON]

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