Mattel, Inc. today reported 2008 first quarter financial results. For the quarter, the company reported a net loss of $46.6 million compared to last year's first quarter net income of $12.0 million.

"Results were not completely surprising compared to last year's strong first quarter, which benefited from depleted retail inventories and hot properties such as T.M.X.™ Elmo and CARS," said Robert A. Eckert, chairman and chief executive officer of Mattel. "Our consumer takeaway, though, outperformed shipments, which is a positive sign for the remainder of the year. We are also excited about the introduction of toy lines based on this summer's most anticipated theatrical releases, including Speed Racer, Kung Fu Panda™, Batman®: The Dark Knight™, and the American Girl® movie: Kit Kittredge®, An American Girl®. Although the first quarter was impacted by higher product costs and legal fees, we expect price increases effective in June to aid profitability in the latter half of the year."

Financial Overview
For the quarter, net sales were $919.3 million, down 2 percent compared to $940.3 million last year. On a regional basis, first quarter gross sales decreased 11 percent in the U.S. and increased 8 percent in international markets. Operating loss for the quarter was $36.5 million, compared to prior year's operating income for the quarter of $20.6 million.

Mattel Girls & Boys Brands
For the first quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $592.8 million, up 5 percent versus a year ago. Worldwide gross sales for the Barbie® brand were flat, with increases in international markets offsetting declines in the U.S. Worldwide gross sales for Other Girls Brands were up 16 percent, driven by High School Musical dolls. Worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco® R/C brands, were up 15 percent, led by sales of the new Speed Racer toy line. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were down 5 percent for the quarter.

Fisher-Price Brands
First quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price® Core, Fisher-Price® Friends and Power Wheels® brands, were $341.3 million, or down 13 percent versus the prior year, primarily due to declines in Fisher-Price® Friends.

American Girl Brands
First quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products directly to consumers, were $69.1 million, up 10 percent versus last year, driven by sales in the Atlanta and Dallas boutiques which opened in the second half of 2007.