Mattel First-Quarter Profit Drops Amid HIT Entertainment Acquisition
LONDON - Toy giant Mattel on Monday reported lower first-quarter earnings due in part to costs associated with its acquisition of U.K. kids entertainment firm HIT Entertainment.
The company posted a profit of $7.8 million, or 2 cents per share, including $16 million, or 4 cents a share, in acquisition and integration costs from the $680 million HIT deal. That was down 53 percent from the $16.6 million profit, or 5 cents per share, recorded in the year-ago period.
HIT is the company behind such kids franchises as Thomas the Tank Engine and Bob the Builder.
Quarterly revenue of $928.4 million declined 2 percent, including an unfavorable change in currency exchange rates.
Sales of core Barbie and Hot Wheels products declined 6 percent and 5 percent, respectively.