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MATTEL FIRST QUARTER INCOME UP 24 PERCENT

 LOS ANGELES, April 22 /PRNewswire/ -- Mattel Inc. (NYSE: MAT) today reported record first quarter income of $18.3 million, or $.18 per share, up 24 percent from $14.8 million, or $.14 per share, in the 1992 first quarter. The 1993 performance was before a one- time gain related to the adoption of new accounting principles, which resulted in net income of $32.9 million, or $.32 per share.
 Net sales for the 1993 quarter reached the record level of $346 million, up 6 percent from $326 million in 1992. Toy sales were up 13 percent excluding Nintendo, which totaled $3 million in the current quarter, compared to $20 million in the year-ago quarter. International toy sales -- primarily generated in Europe -- increased 18 percent despite the adverse impact of a strengthening dollar, while U.S. sales grew by 9 percent.
 "Strong worldwide retail sales for our product lines have allowed us to show improved performance over an excellent year-ago quarter," John W. Amerman, Mattel's chairman and chief executive officer, said. "Based on this momentum, we fully expect that 1993 will be Mattel's fifth consecutive year of record sales and earnings.
 "Our continuing growth is being led by strong worldwide demand for our core Barbie, Disney and Hot Wheels products," Amerman said. "We're also benefiting from a number of new product hits, including Sally Secrets -- a new large doll for 1993 -- and our new Nickelodeon-branded activity toys."
 The adoption of Statement of Financial Accounting Standards No. 109 (income taxes) and Financial Accounting Standards No. 106 (health care benefits of retired employees) resulted in a net increase in after-tax earnings of $14.6 million. Paid-in capital also increased by a net $13 million, reflecting a $53 million credit related to FAS 109, partially offset by a $40 million charge for the early termination of a real estate lease related to the Mattel Electronics business, which was discontinued in 1984.
 Mattel Inc. is a worldwide leader in the design, manufacture and marketing of children's toys. With headquarters in El Segundo, Calif., Mattel has offices and facilities in 30 foreign countries and sells its products in more than 100 nations throughout the world.
 MATTEL INC. AND SUBSIDIARIES
 Consolidated Results of Operations
 (In thousands, except per share amounts)
 For The
 Three Months Ended
 March 31, March 31,
 1993 1992
 Net sales $346,249 $326,106
 Cost of sales 179,600 170,903
 Gross profit 166,649 155,203
 Advertising and promotion
 expenses 49,167 46,177
 Other selling and
 administrative expenses 81,364 77,462
 Other (income), net (2,299) (378)
 Operating profit 38,417 31,942
 Interest expense 10,331 8,646
 Income before income taxes 28,086 23,296
 Provision for income taxes 9,800 8,500
 Income before cumulative
 effect of changes in
 accounting principles 18,286 14,796
 Cumulative effect of changes
 in accounting for income
 taxes and postretirement
 benefits other than
 pensions(a) 14,590 ---
 Net income $32,876 $14,796
 Income Per Share -- Primary
 Income before cumulative
 effect of changes in
 accounting principles $0.18 $0.14
 Cumulative effect of changes
 in accounting for income
 taxes and postretirement
 benefits other than pensions 0.15 ---
 Net income per share --
 primary $0.33 $0.14
 Average number of common
 and common equivalent shares
 outstanding -- primary 96,858 97,674
 Income Per Share -- Fully Diluted
 Income before cumulative
 effect of changes in
 accounting principles $0.18 $0.14
 Cumulative effect of
 changes in accounting for
 income taxes and
 postretirement benefits
 other than pensions 0.14 ---
 Net income per share --
 fully diluted $0.32 $0.14
 Average number of common and
 common equivalent shares
 outstanding -- fully diluted 104,388 105,234
 (a) The net effect on earnings because of the 1/1/93 adoption of FAS Nos. 109 and 106 was an increase of $16 million and a decrease, net of taxes, of $1.4 million, respectively.
 Condensed Consolidated Balance Sheets
 (In thousands)
 March 31, March 31, Dec. 31,
 1993 1992 1992
 Assets
 Cash, cash equivalents
 and marketable securities $151,191 $68,437 $295,186
 Accounts receivable, net 439,363 431,033 377,565
 Inventories 161,561 205,007 156,665
 Prepaid expenses 99,217 32,862 43,083
 Total current assets 851,332 737,339 872,499
 Property, plant and
 equipment, net 221,835 208,751 223,202
 Other assets 167,376 157,407 164,592
 Total assets $1,240,543 $1,103,497 $1,260,293
 Liabilities and
 Shareholders' Equity
 Notes payable to banks $48,677 $131,071 $---
 Current portion of long-term
 liabilities 8,897 5,515 8,914
 Accounts payable and accrued
 liabilities 288,160 245,612 336,883
 Income taxes payable 40,900 51,994 67,702
 Total current liabilities 386,634 434,192 413,499
 Long-term debt 70,323 94,035 90,346
 Other long-term
 liabilities 31,961 37,237 33,534
 Senior notes 99,374 --- 99,344
 Convertible debt 97,598 97,397 97,547
 Shareholders' equity (b) 554,653 440,636 526,023
 Total liabilities and
 shareholders' equity $1,240,543 $1,103,497 $1,260,293
 (b) Shareholder's equity reflects a $12.7 million net increase in paid-in capital because of a $53.0 million credit related to adoption of FAS No. 109, partially offset by the $40.3 million cost to terminate a prequasi-reorganization lease commitment relating to the company's electronics business, which was discontinued in 1984.
 -0- 4/22/93
 /CONTACT: Glenn Bozarth of Mattel, 310-524-3521/
 (MAT)


CO: Mattel Inc. ST: California IN: HOU SU: ERN

JB-JL -- LA035 -- 9618 04/22/93 15:10 EDT
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Date:Apr 22, 1993
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