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Non-Tech : MAT - Mattel - toysRthem -- Ignore unavailable to you. Want to Upgrade?

To: Neil H who wrote (279)	10/21/1999 9:47:00 AM
From: Duker	Read Replies (1) \| Respond to of 706

Mattel Reports 1999 Third Quarter Results LOS ANGELES, Oct. 21 /PRNewswire/ -- Mattel, Inc. (NYSE: MAT - news) today reported that earnings for the third quarter ended September 30, 1999 totaled $135.3 million or $.32 per share, versus $233.8 million or $.54 before after- tax charges of $65.1 million in the 1998 third quarter. Sales for the 1999 quarter were $1.83 billion, compared with $1.88 billion in 1998. As Mattel advised in its October 4 press release, these results were adversely affected by issues at its Learning Company division. ``While we are most disappointed in developments at The Learning Company, and by continuing difficulties in international markets, we are encouraged by U.S. sales increases in the quarter for our core Barbie©, Fisher-Price©, Wheels and American Girl© brands,' Jill E. Barad, Mattel's chairman and chief executive officer, said. Mattel said that The Learning Company division incurred an after-tax loss of approximately $105 million in the quarter, versus the $50 million profit that had been expected earlier. The significant contributors to this earnings shortfall were distributor and retailer returns and allowances of $58 million, stemming in large part from the merger of Mattel and The Learning Company; increased bad debt reserves of $56 million, primarily involving one major distributor, and Mattel's decision not to complete a significant Learning Company licensing agreement that had been budgeted since June to produce $60 million in earnings. For the first nine months of 1999, earnings totaled $205.8 million or $.49 per share before $269.7 million in after-tax charges related to integration, restructuring and other non-recurring costs. This compares with $263.9 million or $.62 per share in the 1998 nine months, before one-time, after-tax charges of $146.5 million. Net sales for the period were $3.74 billion, versus $3.80 billion for the 1998 nine months. ``Although we believe the major problems at The Learning Company are behind us, we are not yet projecting that it will return to substantial profitability in the fourth quarter,' Barad said. ``As a result, it is our present estimate that Mattel's earnings for 1999 will be in the range of $.70 to $.80 per share.' Mattel is a worldwide leader in the design, manufacture and marketing of family products. With headquarters in El Segundo, California, Mattel has offices and facilities in 36 countries and sells its products in more than 150 nations throughout the world. Note: Forward-looking statements included in this release with respect to the financial condition, results of operations and business of the company, which include, but are not limited to sales levels, restructuring and integration charges, special charges, other non-recurring charges, cost savings, operating efficiencies and profitability, are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. These include without limitation: the company's dependence on the timely development, introduction and customer acceptance of new products; significant changes in buying patterns of major customers; possible weaknesses of international markets; the impact of competition on revenues and margins; the company's ability to successfully integrate the operations of The Learning Company following its merger into the company; the effect of currency fluctuations on reportable income; unanticipated negative results of litigation, governmental proceedings or environmental matters; and other risks and uncertainties as may be detailed from time to time in the company's public announcements and SEC filings.