The FINANCIAL — Mattel, Inc. (NYSE: MAT) on October 20 reported 2008 third quarter financial results. For the quarter, the company reported net income of $238.1 million, or $0.66 per share, compared to last year's third quarter net income of $236.8 million, or $0.61 per share.
"In light of the recent global economic environment, our business performed well in the quarter," said Robert A. Eckert, chairman and chief executive officer of Mattel, Inc. "The all-important holiday season, however, is ahead of us, and fortunately, we've got some of the industry's hottest toys that deliver terrific play value for both parent and child."
Financial Overview
For the quarter, net sales were $1.95 billion, up 6 percent compared to $1.84 billion last year, including favorable changes in currency exchange rates of 2 percentage points. On a regional basis, third quarter gross sales increased 4 percent in the U.S. and increased 7 percent in international markets, including favorable changes in currency exchange rates of 6 percentage points. Operating income for the quarter was $315.3 million, compared to prior year's operating income for the quarter of $310.5 million.
The company's debt-to-total-capital ratio was 37 percent. Consistent with the seasonality of the business, during the first nine months, the company's cash and equivalents declined by approximately $454 million. This compares to a decline of $929 million in the first nine months of 2007.
Sales by Business Unit
Mattel Girls and Boys Brands
For the third quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.21 billion, up 6 percent versus a year ago. Worldwide gross sales for the Barbie brand declined 1 percent compared to last year, with modest domestic growth offset by international declines. Worldwide gross sales for Other Girls Brands were up 26 percent, driven primarily by Disney's High School Musical dolls. Worldwide gross sales for the Wheels category, which includes the Hot Wheels, Matchbox and Tyco R/C brands, were up 7 percent. Worldwide gross sales for the Entertainment business, which includes Radica and Games and Puzzles, grew 3 percent for the quarter, mostly attributable to shipments of products tied to the movie properties Batman: The Dark Knight, Speed Racer, and Kung Fu Panda.
Fisher-Price Brands
Third quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels® brands, were $833.1 million, or up 4 percent versus the prior year, primarily due to growth in Fisher-Price® Core, partially offset by declines in Fisher-Price® Friends and Power Wheels.
American Girl Brands
Third quarter gross sales for the American Girl Brands business unit, which offers American Girl branded products directly to consumers, were $78.8 million, up 11 percent versus last year, driven by strong sales of products tied to the Kit Kittredge movie, and additional sales in the Atlanta and Dallas boutiques, which opened in the second half of 2007.
About Mattel
Mattel, Inc., is one of the worldwide leader in the design, manufacture and marketing of toys and family products. The Mattel family is comprised of such best-selling brands as Barbie, the most popular fashion doll ever introduced, Hot Wheels, Matchbox, American Girl, Radica and Tyco R/C, as well as Fisher-Price brands, including Little People, Power Wheels and a wide array of entertainment-inspired toy lines. Mattel is recognized as one of 2008's "100 Best Companies to Work For" by FORTUNE Magazine. With worldwide headquarters in El Segundo, Calif., Mattel employs more than 30,000 people in 43 countries and territories and sells products in more than 150 nations. Mattel's vision is to be the world's premier toy brands — today and tomorrow.
Discussion about this post