Mattel Inc. reported a sharp drop in...

Mattel Inc. reported a sharp drop in second-quarter earnings from a year ago because of lower domestic sales and higher selling, administrative and interest expenses. Net income for the three months ended June 28 was $2.1 million, compared to $13.6 million before an extraordinary item in the year-ago quarter. Earnings after extraordinary tax credits were $19 million in the second quarter of 1985. Sales in the latest period totaled $243.2 million, compared to $251.1 million the year before. The Hawthorne-based company attributed the decline in sales volume to a general weak industry environment together with lower domestic sales of the Masters of the Universe line when compared to last year.