Worldwide net sales up 6 percent;
EL SEGUNDO, Calif., Oct. 20, 2008 - Mattel, Inc. (NYSE: MAT) today reported 2008 third quarter financial results. For the quarter, the company reported net income of $238.1 million, or $0.66 per share, compared to last year's third quarter net income of $236.8 million, or $0.61 per share.
"In light of the recent global economic environment, our business performed well in the quarter," said Robert A. Eckert, chairman and chief executive officer of Mattel, Inc. "The all-important holiday season, however, is ahead of us, and fortunately, we've got some of the industry's hottest toys that deliver terrific play value for both parent and child."
For the quarter, net sales were $1.95 billion, up 6 percent compared to $1.84 billion last year, including favorable changes in currency exchange rates of 2 percentage points. On a regional basis, third quarter gross sales increased 4 percent in the U.S. and increased 7 percent in international markets, including favorable changes in currency exchange rates of 6 percentage points. Operating income for the quarter was $315.3 million, compared to prior year's operating income for the quarter of $310.5 million.
The company's debt-to-total-capital ratio was 37 percent. Consistent with the seasonality of the business, during the first nine months, the company's cash and equivalents declined by approximately $454 million. This compares to a decline of $929 million in the first nine months of 2007.
Sales by Business Unit
Mattel Girls and Boys Brands
For the third quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.21 billion, up 6 percent versus a year ago. Worldwide gross sales for the Barbie
Third quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price
American Girl Brands
Third quarter gross sales for the American Girl Brands business unit, which offers American Girl
Mattel will webcast its 2008 third quarter earnings conference call at 8 a.m. Eastern time (5 a.m. Pacific time) today. The conference call will be webcast on the "Investors & Media" section of the company's corporate Web site, www.mattel.com. To listen to the live call, log on to the Web site at least 15 minutes early to register, download and install any necessary audio software. An archive of the webcast will be available on the company's Web site for 90 days and may be accessed beginning two hours after the completion of the live call. A telephonic replay of the call will be available beginning at 11:30 a.m. Eastern time the morning of the call, until midnight Eastern time on Oct. 24th and may be accessed by dialing + (719) 457-0820. The passcode is 3333641.
Information required by Securities and Exchange Commission Regulation G, regarding non-GAAP financial measures, as well as other financial and statistical information, will be available at the time of the webcast on the "Investors & Media" section of www.mattel.com, under the sub-headings "Financial Information" - "Earnings Releases."
Mattel, Inc., (NYSE: MAT, www.mattel.com) is the worldwide leader in the design, manufacture and marketing of toys and family products. The Mattel family is comprised of such best-selling brands as Barbie
Note: Forward-looking statements with respect to the financial condition, results of operations and business of the company are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. These include without limitation: the company's dependence on the timely development, manufacture, introduction and customer acceptance of new products; the seasonality of the toy business; customer concentration and pricing; significant changes in buying and payment patterns of major customers, including as a result of bankruptcy and store closures; adverse changes in general economic conditions in the U.S. and internationally, including adverse changes in the retail environment, credit availability, employment and the stock market; order predictability and supply chain management; the impact of competition (including from sellers of a broad range of play products including video games and consoles, consumer electronics, and retailers' private label products) on revenues and margins; the supply and cost of raw materials (including oil and resin prices), components, employee benefits and various services; the effect of currency exchange rate fluctuations on reportable income; risks associated with acquisitions and mergers; risks associated with product recalls, product liability claims and product safety concerns, such as possible reputational harm, reduced sales or increased costs; risks associated with foreign operations; negative results of litigation, governmental proceedings or environmental matters; changes in laws and regulations; possible work stoppages, slowdowns or strikes; possible outbreaks of SARS, bird flu, or other diseases; political developments and the threat or occurrence of war or terrorist acts; the possibility of catastrophic events; the inherent risk of new initiatives; and other risks and uncertainties as may be detailed from time to time in the company's public announcements and SEC filings. This release contains forward-looking statements about the performance of our brands and product lines during the holiday season. Mattel does not update forward-looking statements and expressly disclaims any obligation to do so.
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Lisa Marie Bongiovanni