Strong forecast for Oak Brook toymaker RC2

RC2 Corp., the maker of Bob the Builder and Thomas & Friends toys, jumped the most in almost 12 years in U.S. trading after forecasting 2009 earnings that exceeded analysts' estimates because of lower costs.

RC2 surged $2.31, or 36 percent, to $8.71 at 10:36 a.m. New York time in Nasdaq Stock Market composite trading after touching $9.07, the biggest intraday gain since June 1997.

RC2 still expects to earn $1.35 a share for the year, the Oak Brook-based company said in a statement after the close of regular trading yesterday. Analysts predict $1.27, the average of six estimates compiled by Bloomberg. RC2 posted a surprise first-quarter profit of $1.8 million, or 10 cents a share, when analysts on average projected a loss of 2 cents a share, according to Bloomberg data.

"We are seeing benefits from our focus on cost reduction and cash preservation," Chief Executive Officer Curt Stoelting said in the statement. Selling, general and administrative costs fell 22 percent to $29.7 million in the period ended March 31 after a cost-cutting plan was implemented in the fourth quarter, the company said.

Sales dropped 7.5 percent to $86.3 million in the period. Net income was $2 million, or 11 cents a share, a year earlier.