Mattel profit hit by toy recalls

Toy maker Mattel today reported a 1 per cent drop in third-quarter profit due to multiple product recalls.

Toy maker Mattel today reported a 1 per cent drop in third-quarter profit due to multiple product recalls.

Net income for the quarter ended September 30th slipped to $236.8 million, or 61 cents per share, from $239 million, or 62 cents per share, in the year-ago period.

Latest-quarter results included charges of about $40 million related to product recalls covering lead-tainted merchandise imported from China.

Sales rose 3 per cent to $1.84 billion from $1.79 billion a year ago, mainly helped by the weaker dollar.

READ MORE

Analysts surveyed had expected profit of 70 cents per share on revenue of $1.91 billion.

Since August, Mattel has announced three separate recalls of some 21 million toys because of dangers to children from lead paint or from tiny magnets that can be harmful if swallowed.