Mattel Q4 income down slightly

EL SEGUNDO, Calif. -- Mattel reported that for the fourth quarter, net income was $325.2 million, or 89 cents per share, compared with last year’s fourth quarter net income of $328.4 million, or 89  cents per share. For the year, the company reported net income of $684.9 million, or $1.86 per share, compared with last year’s net income of $528.7 million, or $1.45 per share.

“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 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.”

For the fourth quarter, net sales were $2.12 billion, a 9% increase from $1.96 billion last year, and included an unfavorable impact from changes in currency exchange rates of 2 percentage points. On a regional basis, fourth quarter gross sales were up 11% in the United States and were up 6% in international markets, which included an unfavorable impact from changes in currency exchange rates of 5 percentage points. Operating income for the quarter was $428.6 million, or 20.2% of net sales.

For the year, net sales were $5.86 billion, an 8% increase from $5.43 billion last year, and included an unfavorable impact from changes in currency exchange rates of 2 percentage points. On a regional basis, full-year gross sales were up 9% in the United States and were up 6 percent in international markets, which included an unfavorable impact from changes in currency exchange rates of 4 percentage points. Operating income for the year was $901.9 million, or 15.4% of net sales, compared with the prior year of 13.5% of net sales.