Mattel Net Falls on Toy Recalls; Sales Miss Estimates |
Bloomberg - Oct 15, 2007 |
Mattel Inc., the world's largest toymaker, said profit dropped and sales rose less than analysts estimated after the recall of 21 million Chinese-made products in the past two months, causing the shares to fall 3.7 percent.
Third-quarter net income fell 0.9 percent to $236.8 million, or 61 cents a share, from $239 million, or 62 cents, a year earlier, the company said today in a statement. Revenue increased 2.7 percent to $1.84 billion, missing analysts' estimates of $1.91 billion.
Mattel incurred costs of about $40 million from recalled products that either contained excessive amounts of lead or magnets that may be swallowed. Barbie sales fell 4 percent after four quarters of increases. The recalls occurred as Mattel prepares for the fourth-quarter holiday-shopping season, which comprised 37 percent of sales and half of profit in 2006.
Read Full Article from Bloomberg
- Posted: 2007-10-15 10:15:02
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