Fourth Quarter Highlights

• Worldwide net sales up 9 percent from the prior year;
• Domestic gross sales up 11 percent and
• International gross sales up 6 percent;
• Worldwide gross sales for core brands: Barbie® up 8 percent; Hot Wheels® up 1 percent; Core Fisher-Price® flat and American Girl® up 8 percent; and
• Operating income was $428.6 million compared to operating income of $417.4 million in the fourth quarter of 2009.

Full-Year Highlights

• Worldwide net sales up 8 percent from the prior year;
• Domestic gross sales up 9 percent and
• International gross sales up 6 percent;
• Worldwide gross sales for core brands: Barbie® up 7 percent; Hot Wheels® up 3 percent; Core Fisher-Price® down 3 percent and American Girl® up 5 percent; and
• Operating income was $901.9 million compared to operating income of $731.2 million for the full-year 2009.

Mattel Inc. today reported 2010 fourth quarter and full-year financial results. For the fourth quarter, the company reported net income of $325.2 million, compared to last year’s fourth quarter net income of $328.4 million. For the year, the company reported net income of $684.9 million, compared to last year’s net income of $528.7 million.

“I am pleased with our strong results for the quarter and the year, with revenue growth across brands and markets, and improved profitability,” said Robert A. Eckert, chairman and chief executive officer of Mattel. “Our priority for 2011 is to accelerate our performance by inculcating our new vision and implementing a new organizational structure; uncovering the next layer of cost cutting opportunities; generating significant cash flow; and deploying capital in a disciplined and opportunistic manner.”

Financial Overview

For the fourth quarter, net sales were $2.12 billion, a 9 percent increase from $1.96 billion last year. On a regional basis, fourth quarter gross sales were up 11 percent in the U.S. and were up 6 percent in international markets. Operating income for the quarter was $428.6 million, or 20.2 percent of net sales. For the year, net sales were $5.86 billion, an 8 percent increase from $5.43 billion last year. On a regional basis, full-year gross sales were up 9 percent in the U.S. and were up 6 percent in international markets. Operating income for the year was $901.9 million, or 15.4 percent of net sales, compared to the prior year of 13.5 percent of net sales.

Mattel Girls & Boys Brands

Fourth quarter worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.27 billion, up 9 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 8 percent and worldwide gross sales for Other Girls Brands were up 29 percent. Worldwide gross sales for the Wheels business, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were down 4 percent.

Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were up 12 percent for the quarter. For the year, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $3.66 billion, or up 11 percent. Worldwide gross sales for the Barbie® brand were up 7 percent. Worldwide gross sales for Other Girls Brands were up 16 percent for the year. Worldwide gross sales for the Wheels business, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were down 2 percent. Worldwide gross sales for the Entertainment business, including Radica® and Games and Puzzles, were up 27 percent.

Fisher-Price Brands

Fourth quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price® Core, Fisher-Price® Friends and Power Wheels® brands, were $775.8 million, up 6 percent. For the year, worldwide gross sales for the Fisher-Price Brands business unit were $2.22 billion, up 2 percent.

American Girl Brands

Fourth quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products direct to consumers, were $273.2 million, up 8 percent. For the year, gross sales for the American Girl Brands business unit were $486.6 million, up 5 percent.