Mattel’s 2Q profit falls sharply, but tops views
By The Associated Press Saturday, July 19, 2008NEW YORK - Mattel Inc. said Friday its second-quarter profit fell by nearly half as higher costs offset strong sales of toys related to summer movies like “Kung Fu Panda” and the latest Batman film and the benefit from the weaker dollar.
The results still beat Wall Street’s expectations. That, combined with Mattel’s legal victory in a case against the maker of Bratz dolls, sent the shares soaring nearly 12 percent. The company also said it may raise prices again this spring.
Mattel, which makes Barbie, Hot Wheels and Fisher-Price toys, said quarterly profit dropped 48 percent to $11.8 million, or 3 cents per share, from $22.8 million, or 6 cents per share, a year ago.
Revenue rose 11 percent to $1.11 billion, including a 15 percent rise in international sales that came mainly from the benefit of a weaker dollar. U.S. sales grew just 3 percent.
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