Jakks Lowers Expectations Due to Increasing Costs

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Shares in toy maker Jakks Pacific Inc. dipped early Wednesday after the company lowered its fiscal 2008 earnings guidance due to rising raw material prices and other costs.


The Malibu-based company said it now expects profit of $2.80 per share for the year, down from guidance of $2.91 per share announced in April.


The cut was “in recognition of the higher costs we are experiencing in raw materials, transportation, product testing and litigation,” Jack Friedman, Jakks’ chief executive said in a release.


The toy company did, however, maintain its yearly sales estimate of $891 million, just below Wall Street’s estimate of $906 million.


Shares in Jakks were down 13 percent to $20.90 in early trading Wednesday.

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