Mattel Inc. said Friday its third quarter profit dropped 3 percent as expected as the tough economy dampened demand for flagship brands such as Barbie and Fisher-Price.
The El Segundo toymaker reported net income of less than $230 million (63 cents per share), compared with more than $238 million (65 cents) a year ago. Revenue fell 8 percent to $1.79 billion. A year ago, revenue was boosted by products tied to movies including "Kung Fu Panda," "Speed Racer" and "The Dark Knight."
Earnings matched expectations of analysts surveyed by Thomson Reuters, and revenue was higher than predictions of $1.78 billion.
Barbie sales dropped 8 percent as flat domestic sales were hurt by international declines, but the sales of the company’s American Girl products were up 4 percent. Fisher-Price toy sales were down 6 percent, but Mattel’s Hot Wheels line fared better, up 9 percent.
Chief Executive Robert A. Eckert said revenue "continues to be challenging this year" because of the economy, stronger dollar and a lack of toys tied to hot movies and other entertainment.” The company said that in response to weak sales and cautious ordering by retailers, it continues to cut costs to maintain profit margins.
Mattel shares were up $1.02, or 5 percent, to $20.60 in midday trading on the Nasdaq.
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