Jakks’ higher costs outpace higher sales

Toy maker Jakks Pacific Inc. said Wednesday that second-quarter profit fell 17%, missing analyst expectations, as higher raw material costs offset higher sales.

Profit fell to $4.2 million, or 15 cents a share, from $5 million, or 17 cents, a year earlier, the Malibu-based company said. Revenue rose 12% to $145.3 million.

Analysts polled by Thomson Financial predicted profit of 22 cents a share on revenue of $136.9 million.

The company said action figures and dolls sold well, as did electronic products.

However, higher fuel, raw materials and transportation costs, as well as litigation and product-testing costs, hurt results, the company said.

The company lowered full-year guidance due to higher costs.