Mattel Inc, the world's largest toy maker, said its fourth quarter profit fell 46 percent compared to the same period last year and far below forecasts.
Analysts attributed the losses to a stronger dollar and a weak holiday season not seen in decades.
Fourth quarter profit fell to $176.4 million or 49 cents a share from $328.5 million or 89 cents a share a year earlier, the company said in a statement. Analysts were expecting a profit of 71 cents a share, according to Reuters.
Our business wasn't immune from the deteriorating economic environment of 2008, said Robert A. Eckert, chairman and chief executive officer of Mattel in a statement Monday.
Sales revenue fell 11 percent to $1.94 billion from $2.19 billion. Sales in the U.S. declined 6 percent and 20 percent internationally. An impact from changes in currency exchange rates sent sales down 5 percent, Mattel said. Barbie sales fell 21 percent and Hot Wheels sales fell 22 percent, according to the statement.
In response, our focus for 2009 is on cost and spending reductions, and maintaining a strong balance sheet, added Eckert.