Christmas bonanza boosts Mattel

Firm reports an 86 per cent rise in profit for the fourth quarter, ended December 31st.
Author:
Publish date:
5_ap_mattel.jpg

For the quarter, the company reported net income of $328.4 million, or 89 cents per share, compared to last year’s fourth quarter net income of $176.4 million, or 49 cents per share.

For the year, the company reported net income of $528.7 million, or $1.45 per share, compared to last year’s net income of $379.6 million, or $1.04 per share.

For the quarter, net sales were $1.96 billion, a one per cent increase from $1.94 billion last year, and included a favorable impact from changes in currency exchange rates of four percentage points.

On a regional basis, fourth quarter gross sales were down two per cent in the US and were up three per cent in international markets, which included a positive impact from changes in currency exchange rates of eight percentage points.

For the year, net sales were $5.43 billion, an eight per cent decline from $5.92 billion last year, and included an unfavorable impact from changes in currency exchange rates of two percentage points.

On a regional basis, full-year gross sales were down four per cent in the US and were down 13 per cent in international markets, which included an unfavorable impact from changes in currency exchange rates of four percentage points. Operating income for the year was $731.2 million, up 35 per cent year-on-year.

Bob Eckert, chairman and chief executive officer of Mattel said: “Despite the challenging economic environment, we were pleased with the holiday performance of many of our classic and time-honored brands, including Barbie and Hot Wheels.

“In 2009, we improved execution across the company by realigning our infrastructure; controlling costs and expenses; tightly managing working capital; and reducing capital spending.

"The result was improved profitability, a stronger balance sheet and increased cash flow. Despite the challenging economic environment, we were pleased with the holiday performance of many of our classic and time-honored brands, including Barbie and Hot Wheels.”

Fourth quarter worldwide gross sales for the Mattel girls and boys brands business unit were $1.16 billion, up four per cent versus a year ago. Worldwide gross sales for the Barbie brand were up 12 per cent and for other girls brands were down 17 per cent.

Worldwide gross sales for the Wheels business, which includes the Hot Wheels, Matchbox and Tyco R/C brands, were up 11 per cent. Worldwide gross sales for the entertainment business, which includes Radica and games and puzzles, were up two per cent for the quarter.

For the year, worldwide gross sales for the girls & boys brands were $3.29 billion, or down ten per cent. Barbie sales were down three per cent; Other girls brands were down 20 per cent for the year. The wheels business was down seven per cent and the entertainment business was down 14 per cent.

The Fisher-Price business unit Q4 sales were $729.7 million, down three per cent. For the year, sales were $2.17 billion, down eight per cent.

Related

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.