Ultimate Action Figure News and Reviews Source for DC Comics, GI Joe, Marvel, MOTU, Star Wars, Transformers and All Your Favorite Classic Toys Every Day

ALL SDCC 2014 DC Comics GI Joe Marvel MOTU Star Wars Transformers Customs Reviews Buy / Sell Forums
 
facebook twitter RSS
 
Mattel Reports Third Quarter 2007 Financial Results
Mattel: Jay Cochran - 2007.10.15
Mattel, Inc. (NYSE:MAT) today reported 2007 third quarter financial results. For the quarter, the company reported net income of $236.8 million, or $0.61 per share, compared to last year's third quarter net income of $239.0 million, or $0.62 per share.


Third quarter operating income of $310.5 million included charges and incremental costs of approximately $40 million related to the company's product recalls during 2007. Of this total, $13.3 million related to an increase in the reserves recorded in the second quarter for the August recalls, due primarily to higher than anticipated product return rates; $9.1 million related to additional reserves for subsequent product recalls; and approximately $17 million related to incremental recall related legal, advertising and administration costs incurred in the third quarter.


"Despite the challenges the company faced during the third quarter, the business has performed fairly well, even with some supply chain disruptions that impacted our sales during the quarter. International has continued to drive growth in every major region, and while the U.S. was down slightly in the quarter, we did continue to see strong performance from several lines, especially Core Fisher-Price(R) and our Disney/Pixar CARS(TM) entertainment property," said Robert A. Eckert, chairman and chief executive officer of Mattel. "U.S. Barbie(R) performance was soft and remains an area of focus, although a good portion of the decline in the quarter was directly related to the supply chain disruptions."


Financial Overview


For the quarter, net sales were $1.84 billion, up 3 percent compared to $1.79 billion last year, including favorable changes in currency exchange rates of 3 percentage points. On a regional basis, third quarter gross sales decreased 2 percent in the U.S. and increased 10 percent in international markets, including favorable changes in currency exchange rates of 6 percentage points. Operating income for the quarter was $310.5 million, compared to prior year's operating income for the quarter of $322.2 million.


The company's debt-to-total-capital ratio was 29 percent. Consistent with the seasonality of the business, during the first nine months, the company's cash and equivalents declined by approximately $929 million, compared with a decline of approximately $445 million in the first nine months of 2006. During the third quarter of 2007, the company repurchased 28.3 million shares of its common stock at a cost of $645 million.


Sales by Business Unit
Mattel Girls and Boys Brands

For the quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.14 billion, up 6 percent versus a year ago. Worldwide gross sales for the Barbie(R) brand were down 4 percent, with increases in international markets partially offsetting declines in the U.S. Worldwide gross sales for Other Girls Brands were down 10 percent, due primarily to U.S. declines in the Polly Pocket!(TM) brand. Worldwide gross sales for Wheels, which includes the Hot Wheels(R), Matchbox(R) and Tyco(R) R/C brands, were up 9 percent, led by double-digit growth in the Hot Wheels(R) and Matchbox(R) lines. Worldwide gross sales for the Entertainment business, which includes Radica(R) and Games and Puzzles, increased 29 percent, driven by strong performance of Disney/Pixar CARS(TM) and the addition of the Radica(R) product lines.


Fisher-Price Brands


Third quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price(R) Core, Fisher-Price(R) Friends and Power Wheels(R) brands, were $799.8 million, up 1 percent versus the prior year, reflecting continued strong growth in Core Fisher-Price(R) worldwide, which was partially offset by declines in Fisher-Price(R) Friends.


American Girl Brands


Third quarter gross sales for the American Girl Brands business unit, which offers American Girl(R) branded products directly to consumers, were $71.0 million, or flat with last year.


Live Webcast


Mattel will webcast its 2007 third quarter earnings conference call today at 8:30 a.m. (Eastern), 5:30 a.m. (Pacific). The conference call will be webcast on the "Investors & Media" section of the company's corporate Web site, http://www.mattel.com/. To listen to the live call, log on to the Web site at least 15 minutes early to register, download and install any necessary audio software. An archive of the webcast will be available on the company's Web site for 90 days and may be accessed beginning two hours after the completion of the live call. A telephonic replay of the call will be available beginning at 11:30 a.m. Eastern time (8:30 a.m. Pacific time) the morning of the call, until Tuesday, October 16 at midnight Eastern time (9 p.m. Pacific time) and may be accessed by dialing + (719) 457-0820. The passcode is 1976462.


Information required by Securities and Exchange Commission Regulation G, regarding non-GAAP financial measures, as well as other financial and statistical information, will be available at the time of the webcast on the "Investors & Media" section of http://www.mattel.com/, under the sub-headings "Financial Information" -- "Earnings Releases."


Find it @  Big Bad Toy Store - Ebay

Comments

blog comments powered by Disqus




MORE Mattel NEWS & UPDATES

08:25 AM - 2014.09.22
03:20 PM - 2014.07.27
11:39 AM - 2014.06.12
02:04 PM - 2014.05.15
03:24 PM - 2014.05.06
08:13 AM - 2014.02.28
01:01 PM - 2013.12.15
10:33 AM - 2013.10.31
08:35 PM - 2013.10.20
06:14 PM - 2013.07.03


- ADVERTISE HERE -


Tfieds.com - Buy, sell and trade toys, comics and games



ENI
About
Entertainment News International (ENI) is the popular culture network for fans all around the world. Get the scoop on all the popular comics, games, movies, toys, and more every day!
Sites
Action Figures
Comics
Classifieds
Entertainment
Reset Nation
 
Marvel
Podcasts
Star Wars
Transformers
Links
Support
This site and content are copyright © 2014 Entertainment News International - All other rights revert to their lawful owners
This website is provided for the general public as an information and entertainment resource. If you feel this site has infringed on your legal rights, please contact us