Mattel Posts Net Income Drop

Mattel, the world's largest toymaker, announced on Monday that its net income dropped by 46 percent in the last quarter due to reduced worldwide sales of toys.

Net income for the fourth quarter totaled 176.4 million dollars, or 49 cents per share, compared to 328.5 million dollars, or 89 cents per share in the previous fourth quarter, the company said in a statement.

For the year of 2008, the company reported net income of 379.6 million dollars, or 1.05 dollar per share, compared to the previous year's net income of 600 million dollars, or 1.54 dollars per share.

The fourth quarter saw an 11-percent drop in worldwide net sales, compared with only one-percent drop for the year, the statement said.

The statement said its fourth-quarter net sales were down six percent domestically but plummeted 20 percent on international markets -- from 2.19 billion dollars in the previous fourth quarter to 1.94 billion dollars.

For the year, net sales stood at 5.92 billion dollars, compared to 5.97 billion dollars the year before, the statement said.

The company blamed weak demand on international markets, adversely affected in part by currency exchange rates.

"Our business wasn't immune from the deteriorating economic environment of 2008," said Mattel Inc. Chairman and Chief Executive Officer Robert A. Eckert. "In response, our focus for 2009 is on cost and spending reductions, and maintaining a strong balance sheet."

Source: Xinhua