Mattel’s 1989 Profit Almost Doubles; 4th Quarter Slips

Barbie, He-Man and Hot Wheels racing cars led giant toy maker Mattel Inc. to income of almost $70 million in 1989, although a one-time charge of $11 million cut into the fourth quarter, Mattel’s chairman said Tuesday.

The Hawthorne-based company reported 1989 earnings of $68.7 million, almost double the $35.9 million reported in 1988. However, the $9.7 million in earnings during the fourth quarter dropped from $10.5 million reported in 1988.

In December, Mattel called for redemption of a subordinated debt, which resulted in a one-time charge of $11 million to 1989 earnings. The redemption will result in annual interest savings in 1990 of $8.8 million, said Johm W. Amerman, Mattel’s chairman.

Amerman said the company’s long-established products, its presence in the international market and its manufacturing networks contributed to increased sales for 1989.

Amerman said its 30-year-old legend, Barbie doll, and He-Man, Hot Wheels racing cars, Disney toys and Li’l Miss Dolls “are our core business products that endure over the years.”