Mattel 4Q net income slips 1 percent; sales spike

[February 02, 2011]  EL SEGUNDO, Calif. (AP) -- Mattel says its net income during the crucial holiday quarter slipped 1 percent on higher costs even though revenue rose on strong sales of Barbie and Fisher-Price toys.

The nation's largest toy maker said Wednesday net income edged down to $325.2 million or 89 cents per share, from $328.4 million, or 89 cents per share last year.

Analysts expected 86 cents per share, according to FactSet.

Revenue rose 9 percent to $2.12 billion. Analysts expected net income of $2.07 billion.

Barbie revenue rose 8 percent and Fisher-Price revenue rose 6 percent. Another bright spot was Mattel's entertainment business, which includes Radica electronic games, games and puzzles. Revenue in that unit rose 12 percent.

Revenue at Mattel's Wheels unit, which includes Hot Wheels, Matchbox, and Tyco remote-controlled vehicles, fell 4 percent.

American Girl revenue rose 8 percent to $273.2 million.

The company said inventory increased compared with a year ago, when the company held back due to uncertainty about the economy.

For the year, Mattel Inc., based in El Segundo, Calif. Said net income rose 30 percent to $684.9 million, or $1.88 per share, while revenue rose 8 percent to $5.86 billion.

Toy makers can pull in more than a third of their yearly revenue during the holidays. Research firm NPD Group said last week that overall sales during the holiday quarter, which ended in December, rose 3 percent to $10.2 billion.

Mattel's largest rival, Hasbro, reports its quarterly results Monday.

Mattel separately declared a dividend of 23 cents per share, payable on March 11 to shareholders of record as of Feb. 24.

[Associated Press]

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