Mattel quarterly profit falls on higher costs

Reuters News
Posted: Apr 15, 2011 6:29 AM

NEW YORK (Reuters) - Mattel Inc, maker of Barbie dolls and Hot Wheels cars, reported a lower quarterly profit on higher costs.

The world's largest toy company said its first-quarter net income fell to $16.6 million, or 5 cents a share, from $24.8 million, or 7 cents a share, a year earlier.

Analysts on average were expecting a profit of 5 cents a share, according to Thomson Reuters I/B/E/S.

The news came the day after smaller rival Hasbro Inc also reported a huge drop in profit due to higher costs.

Both companies beat Wall Street expectations on the sales front in the seasonally weak first quarter. Mattel's sales rose 8 percent to $951.9 million, well ahead of the analysts' average estimate of $903.7 million.

(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)