MAT Mattel Inc

Mattel Inc. (MAT) executives on Thursday outlined headwinds for this year, including rising Chinese labor rates, higher costs for resin and packaging and foreign exchange.

Still, Chairman and Chief Executive Robert Eckert and Chief Financial Officer Kevin Farr said many negatives have been offset by positives.

"Obviously, we have to see how the costs play out, but right now, I'd say we haven't really been surprised by anything," Eckert said during a presentation to analysts that was broadcast on the Internet.

Asked if business conditions are better or worse since the company reported first-quarter results in April, Eckert said, "I don't see anything that's really been a gamechanger in terms of what we expect this year."

Mattel anticipated higher costs as it has priced its toys, averaging a low- to mid-single digit price increase so far, Eckert said. And while the strengthening dollar relative to the euro hurts revenue and profit, strength in other currencies has largely offset the impact, he said.

Mattel executives outlined a long-term goal to grow sales by low- to mid-single digit percentages. The world's largest toy maker also reiterated long-term profitability goals, targeting gross profit at about 50% of revenue and operating profit at 15% to 20% of revenue.

The company also intends to maintain its advertising spending at around 11% to 13% of sales and to limit selling, general and administrative expenses at about 20% of sales. Executives did not define "long term."

Mattel shares recently traded down 3.8% at $22.27.

-By Mary Ellen Lloyd, Dow Jones Newswires, 704-948-9145; maryellen.lloyd@dowjones.com

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