MarketWatch: Bad Day for Barbie

[marmar]

Mattel's fourth-quarter profit falls 46%
By Matt Andrejczak, MarketWatch


SAN FRANCISCO (MarketWatch) -- Mattel Inc. reported Monday that fourth-quarter profit fell 46% from last year, sending its shares down 15%, showing that the usually economic-resilient toy industry also was a victim of weak consumer spending during the holidays.

To weather the current storm, the world's biggest toy maker plans to shrink its toy lines, cut more jobs and other overhead costs. Mattel cut 1,000 jobs, or 8% of its global workforce, in November.

While the toy industry has sidestepped other economic downturns, 2008 was tough on all consumer product makers. Analysts are forecasting U.S. toy industry sales fell 5% to 6% from 2007. A final figure is expected to be released at Toy Fair in mid-February.

"We underperformed for the quarter and ultimately the year due to a combination of lackluster sales, lower gross margin and higher expenses," said Mattel Chief Executive Officer Bob Eckert.

El Segundo, Calif.-based Mattel reported quarterly net income of $176.4 million, or 49 cents a share. In the year-ago period, when its profit was hit by product recall charges, the toy maker earned $328.5 million, or 89 cents a share. .........(more)

The complete piece is at: http://www.marketwatch.com/news/story/Mattel-shrink-toy-lines-after/story.aspx?guid=%7BA9F8269D%2D5A25%2D4C73%2D8FE6%2D1F5A1976E8F0%7D

[NYC_SKP]

1. Wooden toys, learning toys, toys that positively impact children. Made in the USA.

In other words, fuck Barbie AND Mattel.

Best wishes to any American workers for Mattel, but screw the company.