Mattel Posts Q2 Loss But Tops Estimates

July 18, 2008 7:17 p.m. EST

New York, NY (AHN) - Mattel Inc. reported Friday a 48 percent drop in second quarter earnings. However, shares rallied as the decline was smaller than analysts expected.

For the second quarter, Mattel earned $11.8 million or 3 cents a share, compared to $22.8 million or 6 cents a share in the same period a year earlier.

Revenue was $1.11 billion, 11 percent higher than last year. International sales grew 15 percent while U.S. sales were up 3 percent.

Mattel said sales of toys related to movies such as "Kung-Fu Panda" and "Dark Night" helped spur the growth. Sales of the company's mainstay, Barbie, were down 6 percent for the quarter.

Analysts were looking for earnings of 2 cents a share on $1.04 billion in revenue.

"Although the second quarter, like the first, is relatively small for us, we are pleased to generate some positive top-line momentum and see clean retail inventory levels as we enter the second half," Mattel Chairman and CEO Robert A. Eckert said in a conference call, according to the Associated Press.

Higher costs did eat into profits as selling and administrative expenses rose 16 percent to $347.million.

Mattel said it may raise prices for products this spring.

Shares of Mattel (MAT) rose 13 percent to $20.66 on Friday.