Learning Curve's Q2 profit climbs

The firm (RC2) reported 15 per cent increase in profit, as it benefited from strong international sales.
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The net income for the second quarter, ended June 30th, 2010, was $3.8 million, compared with $3.3 million for the second quarter 2009.

The company reported net income for the six months, of $7.2 million, compared with $5.1 million.

Net sales for the second quarter decreased by 1.1 per cent to $86.1 million compared with net sales of $87 million for the second quarter 2009.

Net sales for the first half increased by 0.5 per cent to $174.2 million compared with $173.3 million for the same period in 2009.

International sales for the quarter increased 12.8 per cent, due to strong international growth in the mother, infant and toddler products category, shipments of Chuggington train-play+ products and favorable foreign currency exchange rates.

Net sales in the mother, infant and toddler category increased by 5.4 per cent in the second quarter, which Stoelting says is due to increases in The First Years care and gear product lines and Lamaze infant development toys.

The category makes up around 44 per cent of the total annual net sales, and the firm expects continued future growth in this category.

Curt Stoelting, CEO of RC2 commented: “Second quarter sales reflected steady overall consumer spending and continued conservative retailer ordering.

“Net sales in our pre-school, youth and adult products category decreased 8.2 per cent in the second quarter due to declines in the discontinued Take Along Thomas & Friends die-cast product line.

"Net sales in this category increased by 16.3 per cent, due to increases from Chuggington die-cast, Thomas & Friends Early Engineers™ and Dinosaur Train product lines. We are seeing very positive initial results for our new product lines and believe that the 2010 transition in our preschool, youth and adult category is on track.

Stoelting concluded: “We are pleased with our first half results but continue to plan for a challenging economic environment. We remain focused on our long-term strategic goals, which include both organic growth and growth through acquisition.

"Our strong financial position, our experienced, proven management team and our multi-category product portfolio provide us with the opportunity to continue to deliver solid results in 2010 during our preschool product line transitions, while building toward higher levels of sustainable growth in 2011 and beyond.”

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