Mattel Inc. to recall Power Wheel toys; charge pushes down earnings by 8.8%

Article Abstract:

Mattel Inc. has voluntarily recalled about 2.5 million Power Wheel toys made for pre-schoolers. The Consumer Product Safety Commission claims the battery-powered vehicles are a fire hazard. Mattel claims the instances it has investigated showed product tampering as the cause. As a result of the recall, company earnings for the year are reduced 8.8%, putting net income at $199.7 million instead of $226.9 million. Mattel inherited the toy when it acquired the Power Wheels line in l994, though the toy has been in production for 10 years.

Product standards, safety, & recalls, Games, toys, and children's vehicles, Children's Vehicles ex Bicycles, Product defects and recalls, Investigations, Abstract, Toy industry, MAT, United States. Consumer Product Safety Commission, Toy vehicles, Riding toys

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Mattel reports profit fell by 20% in second period

Article Abstract:

Mattel Inc. announced that its earnings for the second-quarter of 1998 dropped by 20%. The company has been hurt by reductions in inventory by its main retail customer. Mattel's net income for the quarter dropped to $60.4 million from $75.6 million during the same period in 1997. The fall in sales was expected. Mattel said that it is expecting to reach its predictions of an 18% rise in earnings for 1998.

Comment:

Announced that its earnings for the second-quarter of 1998 dropped by 20%

Sales, profits & dividends, Company Planning/Goals, Toys, Article

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