Mattel profit surges

Toymaker Mattel, maker of Barbie dolls and Matchbox cars, yesterday said fourth-quarter earnings rose 35 per cent, led by strong sales of Barbie products and Fisher-Price infant and toddler toys.

The number one US toymaker reported net income of $186.1 million, or 42 cents per share, up from $138 million, or 31 cents a share, a year earlier. Net sales rose seven per cent to $1.67 billion.

Excluding non-recurring items, Mattel earned $190.3 million, or 43 cents per share, compared with $154.9 million, or 35 cents per share, the year before.

The average earnings estimate among analysts polled by Thomson First Call was 38 cents per share before special items, with estimates ranging from 35 cents to 42 cents.

Mattel took a pre-tax charge of $25.4 million in the fourth quarter for the settlement of shareholder litigation related to the company's ill-fated 1999 acquisition of The Learning Co.

"While we clearly had a strong year, we see more opportunities to improve our performance as we look ahead, but we also see a continuation of the challenging business environment," Robert Eckert, chairman and chief executive, said in a statement.