Mattel Posts Profit Gain of 21% for 4th Quarter

Mattel Inc. reported a 21% gain in quarterly profit Thursday despite a modest sales increase. Cost controls helped boost full-year profit by 20%, excluding one-time charges.

With a sales gain of 2%, to $1.6 billion, during the company’s holiday selling period, the toy maker reported fourth-quarter earnings of $146 million, or 33 cents a share, not including one-time charges, compared with $120.6 million, or 28 cents a share, for the same period a year earlier.

For the year, Mattel earned $351.6 million before charges, or 82 cents a share, up from $293.3 million, or 69 cents, in 2000. Sales rose 3% to $4.8 billion.

The company also announced it was cutting 240 jobs at its U.S. facilities, including at its El Segundo headquarters and at the Fisher-Price division in East Aurora, N.Y

Including charges related to the company’s closure of its U.S. manufacturing facilities and other one-time costs, Mattel posted 2001 net income of $298.9million, or 69 cents a share, compared with a net loss of $431million a year earlier, or $1.01 a share. The 2000 loss was related mostly to the firm’s failed Learning Co. interactive unit, which it has since divested.

The latest quarter’s charges included a 4-cents-a-share reduction for the write-down of debt related to the bankruptcy filing of Kmart Corp., which accounts for 6% of Mattel’s sales.

In a conference call with analysts, Mattel Chief Executive Robert Eckert said strong foreign sales have helped offset slow domestic results. He reiterated that Mattel expects annual earnings growth to be at least in the low-double-digit range over the next three to five years.

Mattel shares rose 35 cents to $19 on the New York Stock Exchange.

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Abigail Goldman