UPDATE 1-Mattel on track to achieve savings target-CFO

* Still targeting $180 mln-$200 mln total savings by 2010

* Sees long-term gross margin 50 pct of net sales

* Shares up 1.5 percent

By Aarthi Sivaraman

NEW YORK, June 17 (Reuters) - Mattel Inc MAT.N, the world's biggest toy company, is on track for cumulative savings of up to $200 million by the end of 2010 as it cuts costs to offset lower sales in the economic downturn.

Mattel, which has cut 1,000 jobs, shaved expenses tied to corporate travel and taken steps to trim distribution and advertising costs, is already looking at savings of $90 million to $100 million this year, Chief Financial Officer Kevin Farr said on Wednesday at the company's annual analysts meeting, which was also webcast.

The workforce reduction would result in savings of $60 million, while a tighter travel policy would yield a 20 percent to 25 percent reduction in those expenses, Farr said.

Mattel, with key brands such as Barbie and Hot Wheels, has already raised prices of its toys in 2009. It has faced high input costs in the past few years, although some commodity costs have eased a bit recently.

Raw materials like resin and packaging make up about 40 percent of Mattel's cost of goods sold, while labor makes up about 17 percent.