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posted: 4/16/2012 6:52 AM

Mattel 1Q net income falls, Barbie sales down

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  • Mattel's first-quarter profit dropped 53 percent, pulled down by costs tied to an acquisition and lower sales for Barbie and Hot Wheels.

      Mattel's first-quarter profit dropped 53 percent, pulled down by costs tied to an acquisition and lower sales for Barbie and Hot Wheels.
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Associated Press

EL SEGUNDO, Calif. -- Mattel's first-quarter profit dropped 53 percent, pulled down by costs tied to an acquisition and lower sales for Barbie and Hot Wheels.

The largest U.S. toy maker reported on Monday that its net income fell to $7.8 million, or 2 cents per share, for the three months ended March 31. That's down from $16.6 million, or 5 cents per share, a year earlier.

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Excluding costs related to the $680 million HIT Entertainment acquisition, adjusted earnings were 6 cents per share. That was a penny below what analysts surveyed by FactSet were expecting.

HIT Entertainment is the company behind Thomas the Tank Engine and Bob the Builder. Mattel announced the deal in October.

Revenue fell 3 percent to $928.4 million from $951.9 million a year ago as the currency exchange rate dragged on the El Segundo, Calif., company. Analysts expected revenue of $986 million.

Mattel's stock dipped 1 cent to $34.12 in premarket trading.

Worldwide gross sales for Barbie slipped 6 percent in the quarter, while sales of other girls brands -- which includes Monster High -- rose 22 percent. The Wheels segment -- which includes Hot Wheels, Matchbox and Tyco R/C -- reported a 6 percent sales decline. Sales for the entertainment unit -- which includes Radica and games -- fell 17 percent mostly because of declines in the Cars property. Fisher Price sales were essentially flat at $310.2 million, while sales of American Girl climbed 4 percent on strong sales of the 2012 Girls of the Year, McKenna. The Fisher Price division makes pre-school toys such as Power Wheels

"As is often the case this time of year, we have work to do in certain areas across our portfolio of brands, countries and customers as we prepare to successfully execute the all-important holiday season," CEO Bryan Stockton said in a statement.

Mattel Inc. declared a second-quarter dividend of 31 cents per share. The dividend will be paid on June 15 to shareholders of record on May 23.

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