Mattel misses Wall Street expectations, hit by litigation charge
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Mattel Inc., the El Segundo toy maker, reported increased revenue in its fourth quarter, but profit fell 17% due to a litigation charge.
On Friday, the Barbie and Hot Wheels maker reported net earnings of $306.5 million, or 87 cents a share, for the three-month period ending Dec. 31, 2012, compared with $370.6 million, or $1.07, in the same period the year before.
During the quarter, Mattel had a charge of $137.8 million related to litigation in a trade dispute with Carter Bryant and MGA Entertainment Inc. over the Bratz doll line. Excluding the litigation charge, the company earned $1.12 a share, still missing analysts’ forecast of $1.15.
Revenue for the quarter, which includes the crucial holiday shopping season, rose 5% to $2.26 billion from $2.15 billion.
Mattel’s full-year net income was $776.5 million, or $2.22 a share. That’s up 1% from $768.5 million, or $2.18, the year before.
Total revenue on the year increased 2% to $6.42 billion from $6.27 billion.
In mid-session trading, Mattel’s stock was up 50 cents, or more than 1%, to $38.13.
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