Mattel 1Q net income falls on higher spending

[April 15, 2011]  EL SEGUNDO, Calif. (AP) -- Sales of Barbie and other dolls helped Mattel Inc.'s revenue rise 8 percent during the first quarter. But higher spending on advertising and other expenses outpaced sales growth and the largest U.S. toy maker's net income fell 33 percent.

Net income fell to $16.6 million, or 5 cents per share, for the three months ended March 31, from $24.8 million, or 7 cents per share, last year. Analysts expected earnings of 4 cents per share, according to FactSet.

Revenue rose 8 percent to $951.9 million from $880.1 million. That beat analyst predictions of $905.1 million. Sales rose 7 percent in the U.S. and 10 percent internationally.

Dolls were big sellers during the quarter, typically a small one for toy makers since it follows the crucial holiday quarter. Mattel's Barbie continued its run of strong sales, up 14 percent during the quarter. Monster High and Disney Princesses also sold well. American Girl brands rose 4 percent.

Hot Wheels rose 6 percent. In the company's games and puzzles business, toys related to movies including Disney/Pixar's "Toys," "Green Lantern" and "Toy Story" were popular.

Fisher-Price revenue fell 2 percent as the company ended its Sesame Street toy line.

Separately, the El Segundo, Calif.-based company issued a quarterly dividend of 23 cents, payable on June 17 to shareholders of record as of May 25.

On Thursday, Mattel's chief rival Hasbro Inc. said its first-quarter net income fell 71 percent while revenue was nearly flat at $672 million.

[Associated Press]

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