RC2 reports losses

Firm blames fall in product categories and re-call costs for Q2 losses.
Publish date:
Social count:

RC2 Corporation yesterday reported that net sales were down by 14 per cent to $92.2 million for its second quarter, compared with $106.6 million last year.

The loss of more than $10 million was attributed to the 27 per cent drop in pre-school product sales, particularly Bob the Builder, John Deere and Thomas & Friends.

The firm also reported the negative impact its wooden railway toy product recall had on the quarter's performance. Returns and allowances cost the firm $3.3 million and it estimates it will spend a further $3 to $4 million (net of tax) in the second half of 2007 on the product recall, including costs to defend the law suit filed against the company.

Curt Stoelting, RC2's CEO, said that the second quarter was very challenging.

"In the second half, we expect a continuation of lower pre-school by sales trends with some positive contribution from our new products launching in this category which include the Take Along by Learning Curve's Nickelodeon product line and our new Play Town platform brand featuring wooden figures, playsets and books," he said.

"As expected, our gross margin, excluding the impact of charges related to the voluntary recall, declined in the second quarter and for the first six months as we continued to experience the impact of increase China and raw material costs, particularly zinc, and a shift in our product and distribution mix," he continued.



RC2 posts Q3 loss

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

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.


UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.