Barbie, Hot Wheels Give Mattel 82% Profit Boost

Toy maker Mattel Inc. on Tuesday reported an 82% rise in profit for the latest quarter, helped by strong U.S. sales of its popular Barbie dolls and Hot Wheels toys.

El Segundo-based Mattel said its fourth-quarter net income rose to $195.1 million, or 64 cents per share on a diluted basis, matching analysts’ forecasts. Year-ago results were $106.9 million, or 35 cents per share. Revenue rose 13%, to $1.6 billion from $1.4 billion.

“We’re very proud of this performance,” said Mattel Chief Executive Jill Barad, noting that global sales of Barbie, the world’s most popular doll, rose 12% in local currency terms and 9% on a dollar basis.

Analysts said Mattel also cited dramatic increases in interactive Barbie products, such as CD-ROMs, in 1997. Revenue from Mattel’s Disney-licensed line of toys rose 17% and Hot Wheels brands rose 21%. Mattel achieved a 15% increase in its worldwide Infant and Preschool category despite a 15% decline at Fisher-Price.

For the full year, Mattel said, its earnings rose 34% to $499.5 million, or $1.65 per diluted share, before charges for the integration of Tyco Toys Inc.--acquired in March--and a note redemption.

After charges, net income was $290.5 million, or 94 cents a diluted share. Net income for 1996 was $372.2 million, or $1.23 per diluted share.

Sales totaled $4.8 billion, up 7% from $4.5 billion in 1996. In local currency terms, 1997 sales were up 10% before a $139-million negative impact from foreign exchange rates.

On Tuesday, Mattel shares rose 6 cents to close at $42 on the New York Stock Exchange.

“My sense is there were no big surprises this quarter, and I’m looking for further benefits from Mattel’s restructuring, which should go a long way toward its goal of 15% earnings growth,” said Tom Graves, a Standard & Poor’s analyst.

Mattel announced last year it would lay off about 2,700 employees and save $700 million over the next five years as a result of cost-cutting measures.