The earnings of toy company Mattel shrank by
46 per cent to 176 million dollars in the last quarter of 2008 compared to the
same period in 2007, due to the firm's worst Christmas sales in decades, CEO
Robert Eckert said in El Segundo, California, on Monday, dpa reported.
He blamed the economic crisis for the losses, which reduced quarterly revenues
by 11 per cent to 1.9 billion dollars.
Sales of the Barbie doll, one of Mattel's most profitable items, declined by 21
per cent. The doll will be celebrating its 50th anniversary this year with a
makeover, Mattel has promised.
Barbie sales have suffered not only from the economic downturn but also from
intense competition from the Bratz dolls by Mattel rival MGA. The two companies
are engaged in a fight over patent rights to the doll's design after Bratz
designer Carter Bryant had worked on the design while still employed by Mattel.
Mattel's profits plunged especially outside the US, where it lost 20 per cent
of its foreign profits. In domestic sales, Mattel only lost 6 per cent compared
to profits in the same period of 2007.
For all of 2008, Mattel reported revenues of 5.9 billion dollars, a 1 per cent
decline from the previous year.
Mattel plans to reduce costs in 2009, and has already announced elimination of
1,000 jobs worldwide, about 3 per cent of its work force.
Mattel's competitor Hasbro plans to release its financial statement next Monday.
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