PxPixel
RC2: Losses reported in second quarter - ToyNews

RC2: Losses reported in second quarter

RC2 announced yesterday that sales were down for Q2.
Author:
Publish date:
5_Pocoyo.jpg

The company reported a net loss of $6.4 million, or 37 cents a share, for the second quarter of 2008, compared with net income of $2.5 million, or $0.11 per diluted share, in the second quarter of 2007.

Net sales for the second quarter decreased by approximately four per cent, to $89.2 million. Net sales for the quarter, excluding those of discontinued product lines and recall-related returns and allowances, of $89.1 million decreased approximately two per cent.

Losses have been mainly attributed to recall-related costs of $10.2 million this year and $4.0 million in 2007. The bulk of the costs this year were made up by a one off cash payment of $15 million made to HIT Entertainment in July in exchange for a release from indemnification claims.

The results were an improvement on the first quarter. “Our 2008 second quarter results showed an improvement over our 2008 first quarter comparisons,” said Curt Stoelting, the company’s CEO.

“Overall sales declines slowed as compared with the declines of the first quarter with our preschool, youth and adult products category reporting a slight increase in comparable sales.“

The company reaffirmed its full-year earnings outlook of $1.90 to $2 a share, excluding the impact of recall-related costs and the Children's Publishing Division acquisition.

Related

5_Pocoyo.jpg

RC2 posts Q3 loss

Firm?s income drops by more than 40 per cent, announces increase and extension of stock repurchase program.

5_Pocoyo.jpg

RC2 sales fall

RC2 has posted a lower than expected profit for the third quarter, hurt by a decline in sales.

Featured Jobs

Copyrights Group

Marketing Manager

The Copyrights Group is one of the licensing arms within The Vivendi Group. Acquired by Vivendi in 2016 Copyrights manages the licensing for a portfolio of properties to include Paddington Bear. Some of the other companies within the Vivendi Group include Universal Music Group, and their licensing arm Bravado, Gameloft and Studiocanal to name a few.