DOW JONES NEWSWIRES 
 

Mattel Inc. (MAT) on Friday reported its second-quarter earnings soared 82% on lower costs and non-operating income, though sales slid a bigger-than-expected 19% as consumers cut spending and retailers curb their inventories.

Chairman and Chief Executive Robert A. Eckert said the results met the company's expectations amid the recession, and revenues were largely impacted by a lack of toys tied to summer entertainment. In Mattel's entertainment business, which includes games and puzzles, sales were down 32%.

The toy maker is coming off a first-quarter loss and last year's miserable holiday sales season. In response, Mattel has been cutting costs and implemented price hikes at the start of 2009.

Mattel reported a profit of $21.5 million, or 6 cents a share, up from $11.8 million, or 3 cents a share, a year earlier. Revenue decreased 19% to $898.2 million, with currency exchange accounting for five percentage points of the decline.

Analysts polled by Thomson Reuters most recently were looking for break-even results on revenue of $970 million.

Gross margin rose to 45.2% from 44.5% amid falling costs. In addition, marketing costs dropped 23% and interest costs tumbled 65%.

The bottom line was also boosted by $6.3 million of non-operating income, while the prior year had $6.4 million of such costs. Details weren't disclosed by Mattel in its press release.

Mattels' sales fell 26% internationally, with exchange rates accounting for 10 percentage points of the decline. Sales dropped 12% in North America.

In other segments, Barbie sales declined 15%, mostly on international weakness while its car business saw a 10% drop and Fisher-Price fell 13%.

Shares closed at $16.19 on Thursday and didn't trade premarket. The stock is up 56% since hitting a nine-year low in March.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com