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MATTEL REPORTS RECORD SECOND QUARTER RESULTS

 LOS ANGELES, July 15 /PRNewswire/ -- Mattel Inc. today reported record second quarter net income of $34.0 million, or $.33 per share, up from $23.4 million, or $.22 per share, in the 1992 second quarter. Net sales were a record $411 million, up from $404 million last year.
 "Demand for our product remains excellent," John W. Amerman, Mattel's chairman and chief executive officer, said. "Worldwide toy sales, excluding Nintendo, increased 14 percent in constant dollars vs. the same 1992 period.
 "Our strong bottom line results, achieved despite relatively flat overall sales volume, again demonstrate that Mattel can achieve consistent profitable growth even under difficult economic conditions," Amerman said.
 The quarter-to-quarter comparison of sales was negatively impacted by $50 million, of which $32 million reflected 1992 volume in Nintendo business and $18 million reflected the strength of the U.S. dollar. "Neither of these factors had a significant adverse impact on profitability," he said.
 "Demand for our Barbie and Disney 'Global Brands,' as well as Hot Wheels, Nickelodeon, Polly Pocket and Mighty Max toys, is strong," Amerman said. "With excellent prospects for the second half, we are looking forward to a fifth straight year of record sales and earnings."
 For the first half of 1993, income before a first quarter accounting gain increased to $52.3 million, or $.50 per share, up from $38.2 million, or $.36 per share, last year. Year-to-date sales were $757 million, up from $730 million in 1992. The negative impact to first-half sales was $75 million, including $50 million in 1992 Nintendo volume and $25 million in foreign exchange translation.
 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 For The
 Three Months Ended Six Months Ended
 June 30, June 30, June 30, June 30,
 1993 1992 1993 1992
Net sales $411,170 $404,257 $757,419 $730,363
 Cost of sales 199,226 200,448 378,826 371,351
Gross profit 211,944 203,809 378,593 359,012


Advertising

and promotion
 expenses 61,416 57,889 110,583 104,066 Other selling


and administra-
 tive expenses 87,780 96,557(b) 169,144 174,019(b) Other (income),
 net (1,340) (317) (3,639) (695)
Operating profit 64,088 49,680 102,505 81,622
 Interest expense 11,758 12,863 22,089 21,509
Income before income taxes 52,330 36,817 80,416 60,113 Provision for
 income taxes 18,300 13,400 28,100 21,900


Income befo cumulative effect of changes in accounting principles
 34,030 23,417 52,316 38,213


Cumulative effect
 of changes in
 accounting for
 income taxes
 and post-
 retirement
 benefits other
 than pensions(a) --- --- 14,590 ---
Net income $34,030 $23,417 $66,906 $38,213


Income Per Share -- Primary Income before cumulative effect of changes in
 accounting principles $0.34 $0.23 $0.52 $0.37 Cumulative effect


of changes in

accounting for income taxes

and post-

retirement

benefits other
 than pensions --- --- 0.15 ---
Net income per share -- primary $0.34 $0.23 $0.67 $0.37


Average number of common and common equivalent shares outstanding --
 primary 96,543 97,400 96,701 97,535


Income Per Share -- Fully Diluted Income before

cumulative effect

of changes in

accounting
 principles $0.33 $0.22 $0.50 $0.36


Cumulative effect
 of changes in
 accounting for
 income taxes
 and post-
 retirement
 benefits other
 than pensions --- --- 0.14 --- Net income per


share -- fully
 diluted $0.33 $0.22 $0.64 $0.36


Average number of common and common equivalent shares outstanding -- fully
diluted 104,176 105,070 104,357 105,246
 (a) The net effect on earnings from the Jan. 1, 1993, adoption of FAS Nos. 109 and 106 was an increase of $16 million and a decrease, net of taxes, of $1.4 million, respectively.
 (b) Includes a $10 million charge related to Child World receivables.


Condensed Consolidated Balance Sheets (In thousands)
 June 30, June 30, Dec. 31,
 1993 1992 1992


Assets Cash, cash equivalents
 and marketable securities $82,438 $50,238 $295,186
 Accounts receivable, net 563,623 661,054 377,565
 Inventories 202,254 251,199 156,665
 Prepaid expenses Total current assets 944,209 998,424
 872,499 Property, plant and
 equipment, net 221,276 219,110 223,202
 Other assets 167,110 155,069 164,592
 Total assets $1,332,595 $1,372,603 $1,260,293
Liabilities and Shareholders' Equity Notes payable to banks $41,726
 $362,060 $--- Current portion of long-term
 liabilities 8,675 5,414 8,914 Accounts payable and accrued
 liabilities 270,271 248,991 336,883
 Income taxes payable 51,595 58,139 67,702
 Total current liabilities 372,267 674,604 413,499
 Long-term debt 64,356 96,321 90,346
 Other long-term liabilities 31,782 39,494 33,534
 Senior notes 199,404 --- 99,344
 Convertible debt 97,652 97,445 97,547
 Shareholders' equity 567,134 464,739 526,023


Total liabilities
 and shareholders' equity $1,332,595 $1,372,603 $1,260,293
 -0- 7/15/93
 /CONTACT: Glenn Bozarth of Mattel, 310-524-3521/


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

EH-BP -- LA017 -- 2003 07/15/93 13:13 EDT
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

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