Potter profits slide for Mattel

  July 18, 2003 at 12:06 PM ET
  James     HPANA (via Yahoo! News)

Yahoo! News reportsopens in new window:

Mattel Inc., maker of Barbie dolls and Matchbox cars, on Friday said second-quarter earnings rose slightly, but sales fell as it struggled with intense competition and weak demand.

With sales slipping and interest in its marquee brands waning, Mattel is putting its muscle behind several new toy brands.

The No. 1 toy maker reported income of $20.9 million, or 5 cents per share, compared with a $19.6 million, or 4 cents a share, a year earlier. Net sales fell 4 percent to $769.0 million.

Excluding non-recurring charges, the El Segundo, California-based company earned $30.9 million, or 7 cents per share, compared with $29.6 million, or 7 cents per share, the year before.

Analysts, on average, had been expecting it to earn 7 cents per share, according to Reuters Research, a unit of Reuters PLC.

Worldwide gross sales of company staples like Barbie, Matchbox and Hot Wheels brands fell in the quarter. Sales in Mattel's entertainment category jumped 9 percent, led by growth in the Yu-Gi-Oh brand, games and puzzles segment. Sales declined in Harry Potter products.

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