Mattel, the world's largest toy company, posted lower quarterly profit, missing Wall Street estimates, Monday on charges stemming from its recent global recalls of potentially harmful toys.
The maker of Barbie dolls and the T.M.X. Elmo said third-quarter profit fell to $236.8 million, or 61 cents a share, from $239 million, or 62 cents a share, a year earlier.
Analysts on average were expecting earnings of 70 cents a share, excluding special items, according to Reuters Estimates.
Excluding recall charges, Reuters Estimates estimated the company earned 68 cents a share.
Mattel recalled about 21 million toys earlier this year due to lead paint and hazards posed by small magnets. The company said the recalls resulted in a charge of about $40 million during the quarter.
"Despite the challenges the company faced during the third quarter, the business has performed fairly well, even with some supply chain disruptions that impacted sales during the quarter," Chief Executive Robert Eckert said in a statement.
"U.S. Barbie performance was soft and remains an area of focus," he said, "although a good portion of the decline was directly related to supply chain disruptions."
Sales climbed 3% to $1.84 billion. Analysts were expecting about $1.9 billion, according to Reuters Estimates.