UPDATE 3-Mattel rides Hot Wheels to higher profit
(Adds analyst comment, details on Barbie, stock move, byline)
By Justin Grant
NEW YORK, Jan 31 (Reuters) - Mattel Inc MAT.N posted a better-than-expected fourth-quarter profit on Thursday, helped by strong international demand for its Hot Wheels cars and Fisher-Price line, and its shares rose 10 percent.
Despite the recall of millions of Mattel toys in the past six months due to safety and lead paint concerns, earnings rose to $328.5 million, or 89 cents a share, from $286.4 million, or 75 cents a share, a year earlier.
The maker of Barbie dolls and T.M.X Elmo said sales climbed 4 percent to $2.19 billion.
Analysts, on average, were expecting the world's largest toy maker to earn 73 cents a share on sales of $2.13 billion, according to Reuters Estimates.
Mattel said the results included charges and costs of about $42 million from recalls of Chinese-made toys. It said results were boosted by a tax benefit of $47.3 million.
The fourth quarter is the most important time of year for toy companies because it encompasses the holiday shopping season. The industry rings up nearly half its annual sales during that period, said market research firm NPD Group.
"Considering the challenges we faced in 2007, the business performed fairly well, including strong performances from our international business as well as core Fisher-Price," Chief Executive Robert Eckert said in a statement. Continued...
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