Mattel drops in Q3

Mattel has reported a one per cent drop in fiscal third-quarter profit, due to charges related to product recalls.
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Net income for the quarter ended September 30th slipped to $236.8 million (€167 million), or 61 cents per share, from $239 million, or 62 cents per share, in the year-ago period. Latest-quarter results included charges of about $40 million (€28.2 million) related to the company's product recalls.

Sales rose three per cent to $1.84 billion (€1.3 billion) from $1.79 billion a year ago, mainly helped by the weaker dollar.

Analysts surveyed by Thomson Financial had expected profit of 70 cents per share on revenue of $1.91 billion (€1.35 billion).

"Despite the challenges the company faced during the third quarter, the business has performed fairly well, even with some supply chain disruptions that impacted our sales during the quarter," said Bob Eckert, chairman and chief executive (pictured). "US Barbie performance was soft and remains an area of focus, although a good portion of the decline in the quarter was directly related to the supply chain disruptions."

Eckert said international sales have continued to drive growth, while the US was down slightly in the quarter.

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