Cost-Cutting Boosts Mattel’s Profit

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Mattel Inc. said Friday that cutting expenses in the second quarter enabled it to increase net income by 82 percent, despite a larger-than-expected drop in sales of its Barbie and other toys.

The El Segundo toymaker reported net income of $21.5 million (6 cents per share), compared with $11.8 million (3 cents) a year ago. Revenue dropped 19 percent to $898 million from $1.11 billion.

Analysts surveyed by Thomson Reuters expected Mattel would break even on a per share basis, with revenue of nearly $970 million.

U.S. sales fell 12 percent and international sales, hurt by a stronger dollar, dropped 26 percent. Brands such as Barbie, High School Musical and Polly Pocket toys were down 25 percent, with Barbie sales alone off 15 percent. Fisher-Price sales fell 13 percent, and American Girl sales were flat.

The company offset the declines by reducing advertising and promotion expenses by 23 percent, and selling and administrative expenses by 18 percent.

“In light of the challenging global economy, the quarter’s results met our expectations,” Chief Executive Robert A. Eckert said in a statement. “We are pleased with our ability to deliver on what is in our control, including tightly managing expenses.”

Mattel shares were up 99 cents, or 6 percent, to $17.18 in midday trading on the New York Stock Exchange.

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