Mattel, Inc. today reported 2008 fourth quarter and full-year financial results. For the quarter, the company reported net income of $176.4 million, compared to last year’s fourth quarter net income of $328.5 million. For the year, the company reported net income of $379.6 million, compared to last year’s net income of $600.0 million.

"Our business wasn't immune from the deteriorating economic environment of 2008," said Robert A. Eckert, chairman and chief executive officer of Mattel, “In response, our focus for 2009 is on cost and spending reductions, and maintaining a strong balance sheet.”

Financial Overview

Fourth Quarter Highlights

• Worldwide net sales down 11 percent;
• Domestic gross sales down 6 percent;
• Worldwide gross sales for core brands: Barbie® down 21 percent; Hot Wheels® down 22 percent; Core Fisher-Price® down 9 percent and American Girl® brands up 5 percent;
• Operating income $232.4 million

Full-Year Highlights

• Worldwide net sales down 1 percent;
• Domestic gross sales down 2 percent;
• Worldwide gross sales for core brands: Barbie® down 9 percent; Hot Wheels® down 6 percent; Core Fisher-Price® up 1 percent and American Girl® brands up 7 percent;
• Operating income $541.8 million

For the quarter, net sales were $1.94 billion, an 11 percent decrease from $2.19 billion last year. On a regional basis, fourth quarter gross sales were down 6 percent in the U.S. and were down 20 percent in international markets. Operating income for the quarter was down 36 percent to $232.4 million.

For the year, net sales were $5.92 billion, a 1 percent decline from $5.97 billion last year. On a regional basis, full-year gross sales were down 2 percent in the U.S. and were down 1 percent in international markets, which included a benefit from changes in currency exchange rates of 1 percentage point. Operating income for the year was $541.8 million, down 26 percent compared to the prior year.

Mattel Girls & Boys Brands

Fourth quarter worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.12 billion, down 17 percent versus a year ago. Worldwide gross sales for the Barbie® brand were down 21 percent and worldwide gross sales for Other Girls Brands were down 8 percent. Worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco® R/C brands, were down 19 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were down 17 percent for the quarter.

For the year, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $3.64 billion, or down 2 percent. Worldwide gross sales for the Barbie® brand were down 9 percent. Worldwide gross sales for Other Girls Brands were up 11 percent for the year. Worldwide gross sales for the Wheels category were up 4 percent. Worldwide gross sales for the Entertainment business, including Radica® and Games and Puzzles, were down 4 percent.

Fisher-Price® Brands

Fourth quarter worldwide gross sales for the Fisher-Price® Brands business unit, which includes the Fisher-Price®, Little People®, and Power Wheels® brands, were $754.2 million, down 10 percent.

For the year, worldwide gross sales for the Fisher-Price® Brands business unit were $2.36 billion, down 3 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 $254.0 million, up 5 percent. For the year, gross sales for the American Girl® Brands business unit were $463.1 million, up 7 percent.