Mattel reports third quarter 2011 financial results

Third Quarter Highlights

• Worldwide net sales up 9 percent;
• Domestic gross sales up 6 percent;
• International gross sales up 13 percent;
• Worldwide gross sales for core brands: Barbie® up 17 percent; Hot Wheels® up 6 percent; Core Fisher-Price® up 5 percent and American Girl® brands up 4 percent; and
• Operating income of $397.6 million compared to operating income of $358.6 million.

Mattel Inc. today reported 2011 third quarter financial results. For the quarter, the company reported net income of $300.8 million, compared to last year’s third quarter net income of $283.3 million.

"We continue to be pleased with our performance across our portfolio of brands in all of the regions of the world. Not only have we continued to benefit from the strength of our core brands, but this year's big entertainment property, CARS 2®, is also fueling momentum," said Robert A. Eckert, chairman and chief executive officer of Mattel. “As we enter into the all-important holiday season, we remain keenly focused on execution and delivering growth in our core brands, working to expand and leverage our international footprint, optimizing our entertainment portfolio, and building our newest franchise, Monster High.”

Financial Overview

For the quarter, net sales were $2.0 billion, up 9 percent compared to $1.83 billion last year. On a regional basis, third quarter gross sales increased 6 percent in the U.S. and increased 13 percent in international markets. Operating income for the quarter was $397.6 million, compared to prior year’s operating income for the quarter of $358.6 million.

Mattel Girls & Boys Brands

For the third quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.34 billion, up 15 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 17 percent. Worldwide gross sales for Other Girls Brands were up 32 percent, driven by the Monster High® and Disney Princess™ doll lines. Worldwide gross sales for the Wheels business, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were up 2 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were up 14 percent for the quarter, primarily driven by growth in the CARS 2® property.

Fisher-Price Brands

Third 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 $748.9 million, up 1 percent versus the prior year, primarily driven by sales of Infant products.

American Girl Brands

Third quarter gross sales for the American Girl® Brands business unit, which offers American Girl® branded products directly to consumers, were $87.6 million, up 4 percent versus last year, primarily reflecting sales of products related to Kanani™, the 2011 Girl of the Year®.