If it isn’t bloody obvious to those on the MCCH…..

If it isn’t bloody obvious to those folk on the MCCH who still believe in the fairy tale called Matchbox, well, the below says it all.


The diecast segment is in decline – are Mattel really going to invest in a 60th Anniversary range for the sake of around 100-200 hardcore MB collectors around the world? Are scalpers circling to make a tidy profit?

Also note the opening statement – not a mention of diecast as such but reference to Mattel’s two biggest brands. 



EL SEGUNDO, Calif. (AP) — Mattel Inc. said Monday that its first-quarter profit dropped 53 percent, pulled down by costs tied to an acquisition and lower sales for Barbie and Hot Wheels, particularly in North America.

The largest U.S. toy maker said timing related to shipping “Cars 2”-related toys last year, plus cautious retailer orders, caused North American revenue to slide 9 percent.

Results were below expectations and shares fell more than 7 percent in morning trading.

“We consider the first quarter to be spring training for the toy industry,” said CEO Bryan Stockton. “We continue to have momentum in many key areas and we’re focused on improving our performance in a couple of areas like North America and Fisher-Price.”

Mattel’s net income fell to $7.8 million, or 2 cents per share, for the three months ended March 31. That’s down from $16.6 million, or 5 cents per share, a year earlier.

Excluding costs related to the $680 million HIT Entertainment acquisition, adjusted earnings were 6 cents per share. That was a penny below what analysts surveyed by FactSet were expecting.

HIT Entertainment is the company behind Thomas the Tank Engine and Bob the Builder. Mattel announced the deal in October.

Revenue fell 3 percent to $928.4 million from $951.9 million a year ago as the currency exchange rate dragged on the El Segundo, Calif., company. Analysts expected revenue of $986 million.

Mattel’s stock dropped $2.52, or 7.2 percent, to $31.61 in morning trading. It shares have been trading near their high for the year of $34.62 reached in late March. Its shares traded as low as $22.70 in mid-August.

Worldwide gross sales for Barbie slipped 6 percent in the quarter, while sales of other girls brands — which includes Monster High — rose 22 percent. The Wheels segment — which includes Hot Wheels, Matchbox and Tyco R/C — reported a 6 percent sales decline. Sales for the entertainment unit — which includes Radica and games — fell 17 percent mostly because of declines in the Cars property. Fisher Price sales were essentially flat at $310.2 million, while sales of American Girl climbed 4 percent on strong sales of the 2012 Girls of the Year, McKenna. The Fisher Price division makes pre-school toys such as Power Wheels

“As is often the case this time of year, we have work to do in certain areas across our portfolio of brands, countries and customers as we prepare to successfully execute the all-important holiday season,” CEO Bryan Stockton said in a statement.

Mattel Inc. declared a second-quarter dividend of 31 cents per share. The dividend will be paid on June 15 to shareholders of record on May 23.

Advertisements

4 thoughts on “If it isn’t bloody obvious to those on the MCCH…..

  1. I think this newsbit is not enough to get a real idea about diecast in general. Mattel's sales declines on “wheels” even includes Tyco and could reflect only a wrong aproach from Mattel on the market and not a diecast decline per-se.

    On top of that, Matchbox' share of “Wheels” sales has got to be very small. They might be doing well, who knows.

    Like

  2. I would be interested in seeing a breakdown of the “wheels” division…my guess would be prior to the introduction of crap graphics and bucket loads of plastic Hot Wheels would be down but Matchbox would be up..hence the change in the direction of Matchbox.

    Like

  3. I believe that Mattel will invest in the 60th Anniversary range as it would also be a farewell for Matchbox…Long due with its 'Superb' New Direction which hasn't worked at all.
    MCCH as usual is in dreamland refusing to accept any topic/thread which speaks the ugly truth about Mattel favouring the blue brand.
    All I can say is BYE-BYE Matchbox (wonder what I'm going to do after Matchbox ceases…My only hobby for the past 20yrs…Think Fishing)

    Like

  4. I fear we will not see any 60th birthday bash stuff.As regards the new direction we need to see what the big shed buyers think about it.The figures from Mattel are similar to other huge companies in other fields that are reporting at the moment,to early to tell what will happen later in other reporting quarters.Forget fishing take up some shooting,you would be in good company.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s