DOW JONES NEWSWIRES
Mattel Inc.'s (MAT) third-quarter profit jumped 23%, led by
offerings related to the blockbuster movie "Toy Story 3," but
results fell short of analysts' estimates.
The largest U.S. toy maker by revenue has improved in recent
quarters, rebounding from slumping sales during the economic
downturn. Along with cost-cutting efforts, Mattel has push to
expand its toy line, licensing toys related to recent movies such
as "Toy Story 3." Items related to that film helped Mattel's
entertainment segment report 23% revenue growth.
Meanwhile, sales of its iconic Barbie increased 6% as the line
continues rebound efforts. But Hot Wheels revenue dropped 3% and
Fisher-Price decreased 5%, on top of a 6% drop a year earlier. That
came as Mattel at the end of the quarter recalled more than 11
million Fisher-Price products that can cause injuries to
children.
Mattel reported a profit of $283.3 million, or 77 cents a share,
up from $229.8 million, or 63 cents a share, a year earlier. The
latest quarter included a 5-cent tax benefit. Revenue increased
2.3% to $1.83 billion, and was up 5.3% excluding currency
changes.
Analysts polled by Thomson Reuters had most recently estimated
earnings of 76 cents and $1.94 billion in revenue.
Gross margin narrowed to 51.1% from 51.3%, but that was more
than offset by overhead costs falling 2%.
Shares closed at $24 Thursday and were inactive premarket. The
stock has risen 20% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com