Oct.
17 — EL
SEGUNDO, Calif. (Reuters) - Toy giant Mattel Inc. <MAT.N>, maker
of Barbie dolls and Hot Wheels cars, on Thursday said third-quarter net
earnings rose 40 percent, helped by cost cuts and growth in core brands.
The
No. 1 U.S. toy maker reported net income of $280.6 million, or 63 cents
per share, compared with $199.8 million, or 46 cents a share, a year earlier.
Net sales rose 6 percent to $1.67 billion.
Excluding
non-recurring charges, the company earned $256.7 million, or 58 cents
per share.
The
average earnings estimate among 13 analysts polled by Thomson First Call
was 55 cents per share, with estimates ranging from 53 cents to 58 cents.
Shares
of Mattel jumped 12 percent to $17.70 on the New York Stock Exchange.
"As
I've said before, while we are focused on the long term, there will be
bumps along the way," said Robert Eckert, chairman and chief executive.
"The current disruption caused by the West Coast port dispute, coupled
with an uncertain retail environment, presents near-term challenges, which
we are working to overcome."
The
recently resolved lockout at U.S. West Coast ports slowed holiday shipments
of toys and other items and there is a risk that late deliveries could
miss peak shopping periods and force retailers to discount items, analysts
have said.
The
company said its long-term forecast remains unchanged with revenues expected
to grow moderately in the mid-single-digit range and earnings per share
growth to be in the low double-digits.
Worldwide
gross sales for Barbie were up 6 percent;
Hot
Wheels were up 9 percent; American Girl was up 10 percent; and core Fisher-Price
products were up 23 percent.
Mattel
recorded pretax charges of $5.5 million in the quarter as part of its
$250 million financial realignment plan. The third quarter charges are
largely related to the closure of its North American distribution and
manufacturing facilities and streamlining back office functions.
BARBIE
AND HOT WHEELS
The
girls division had worldwide gross sales of $727.6 million, up 2 percent,
with performance driven by international growth in the Barbie brand, and
growth in the Polly Pocket and American Girl brands.
This
was partially offset by declines in the large doll category, which includes
the discontinuation of the Cabbage Patch Kids line.
International
sales of Barbie rose but domestic sales declined slightly, the company
said, citing its strategy to reduce shipments of adult-targeted collector
and holiday dolls.
Worldwide
sales for the boys entertainment division, which consists of the Wheels
and Entertainment categories, were up 9 percent at $461.8 million. Wheels
sales rose 8 percent driven primarily by strong international sales. The
Entertainment category's sales rose 21 percent on strong sales of the
newly launched He-Man and Masters of the Universe, Yu-Gi-Oh! and SpongeBob
SquarePants lines.
Worldwide
gross sales for the infant and preschool division, which includes the
Fisher-Price, Sesame Street and Disney brands, were up 9 percent.
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