Friday, April 17, 2009

Mattel Posts Wider Quarterly Loss On Weak Sales

. Friday, April 17, 2009

By stockOzone team

Early on Friday, toy maker Mattel (NYSE: MAT) reported that its first net loss widened to $51 million, or 14 cents a share, from $46.6 million, or 13 cents a share, in the prior year quarter. Revenue decreased $785.6 million from $919.3 million. Consensus expectations were for a loss of 13 cent a share loss on revenue of $796 million. Slaes of Barbie products, which account for about one-fifth of company's total sales, declined 5%. Fisher price sales fell 17%.In the Wheels category, which includes Hot Wheels, Matchbox and Tyco R/C brands, sales fell 14%.American Girl Brands sales dropped 4%.

The company was especially hit hard by a weak holiday season. Late onset of Easter also compunded problems for the company. Deepening recession and mounting layoffs even forced parents to cut back on spending on toys.Sales were also also hurt by invenory reduction at retailers.

The toymaker's international sales too were lacluster due to stronger dollar. The first quarter is the seasonally smallest for toy makers.

"This quarter's results met our expectations, with revenues negatively impacted by foreign exchange rates and retailer inventory reductions," said Robert A. Eckert, chairman and chief executive officer of Mattel. "We've made good progress on several strategically important fronts, and will continue to manage costs and expenses in light of expected revenue challenges."

During the quarter the company's cash and equivalents declined by approximately $213 million, compared with a decline of approximately $276 million in last year's first quarter.

Disclosure: Author does not own any of the stocks discussed here.





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