Mattel, Inc. (pronounced /məˈtɛl/; NASDAQ: MAT) is the world's largest toy company based on revenue.[2] The products it produces include Fisher Price, Barbie dolls, Hot Wheels and Matchbox cars, Masters of the Universe, American Girl dolls, board games, and, in the early 1980s, video game consoles. The company's name is derived from Harold "Matt" Matson and Elliot Handler, who founded the company in 1945. Handler's wife, Ruth Handler, later became president, and is credited with establishing the Barbie product line for the company in 1959. After the release of the Barbie doll, Mattel revolutionized the toy industry with its talking dolls and toys. Major successes in the 1960s with the talking Chatty Cathy doll in 1960 and See 'N Say toys in 1965 moved Mattel to its position as the number one toymaker in America. Mattel closed its last American factory, originally part of the Fisher-Price division, in 2002, outsourcing production to China, the beginning of a chain of events that led to a scandal involving lead contamination.[3] On Friday, September 3, 2010 a mini "Flash Crash" appears to have occurred in Mattel shares which plunged 22% in pre-market trade for no apparent reason, only to recover shortly thereafter.[4]
Mattel, Inc. (Mattel), incorporated in 1948, designs, manufactures, and markets a broad variety of toy products worldwide through sales to its customers and directly to consumers. The Company has two segments: Domestic and International. Mattel’s portfolio of brands and products are grouped in categories, such as Mattel Girls & Boys brands, including Barbie fashion dolls and accessories (Barbie), Polly Pocket, Little Mommy, Disney Classics, and Monster High (collectively Other Girls Brands), Hot Wheels, Matchbox, Battle Force 5, and Tyco R/C vehicles and play sets (collectively Wheels), and CARS, Radica, Toy Story, Max Steel, WWE Wrestling, and Batman products, and games and puzzles (collectively Entertainment); Fisher-Price brands, including Fisher-Price , Little People, BabyGea, and View-Master (collectively Core Fisher-Price), Dora the Explorer, Go Diego Go!, Thomas and Friends, Sing-a-ma-jigs, and See ‘N Say (collectively Fisher-Price Friends), and Power Wheels, and American Girl Brand, including My American Girl, the historical collection, and Bitty Baby.
Domestic Segment
The Domestic segment develops toys that it markets and sells through the Mattel Girls & Boys Brands US, Fisher-Price Brands US, and American Girl Brands segments. In the Mattel Girls & Boys Brands US segment, Barbie includes brands such as Barbie fashion dolls and accessories, and Polly Pocket, Little Mommy, Disney Classics, and Monster High are included within
Other Girls Brands. Wheels include Hot Wheels, Matchbox, Battle Force 5, and Tyco R/C vehicles and play sets. Entertainment includes CARS, Radica, Toy Story, WWE Wrestling, and Batman products, as well as games and puzzles.
The Fisher-Price Brands US segment includes Fisher-Price, Little People, BabyGear, View-Master, Dora the Explorer, Go Diego Go! , Thomas and Friends, Mickey Mouse Clubhouse, Handy Manny, See ‘N Say, Sing-a-ma-jigs, The Penguins of Madagascar, Jungle Junction, and Power Wheels.The American Girl Brands segment is a direct marketer, children’s publisher, and retailer for its flagship line of historical dolls, books, and accessories, as well as the My American Girl and Bitty Baby brands.
International Segment
Products marketed by the International segment are generally the same as those developed and marketed by the Domestic segment, with the exception of American Girl Brands, although some are developed or adapted for particular international markets. Mattel’s products are sold directly to retailers and wholesalers in European, Latin American, and Asian countries, and in Australia, Canada, and New Zealand, and through agents and distributors in those countries where Mattel has no direct presence. Mattel’s As of December 31, 2010, the International segment revenue represented 46% of worldwide consolidated gross sales. Within the International segment, Mattel operates in four regional groups: Europe, Latin America, Asia Pacific and Others.
The Company competes with Bandai, Hasbro, Jakks Pacific, Playmobile, Leap Frog, Lego, Spin Master, MGA Entertainment, and VTech.
Robert A. Eckert was named chairman and CEO in May 2000. He had been the head of Philip Morris Companies Inc.'s Kraft Foods unit. In the meantime, Mattel in July 1999 had entered into a global marketing alliance with Bandai Co., Ltd., Japan's largest toy maker and best known at the time for its line of Power Rangers action figures and the Tamagotchi electronic virtual pets. Initially, the alliance involved Bandai marketing Mattel's toys in Japan and Mattel doing likewise for Bandai in Latin America. In February 2000 Mattel reached a deal with Warner Bros., making Mattel the master toy licensee for the best-selling Harry Potter book series and for the first two Harry Potter feature films. Mattel that same year gained the multiyear licensing rights to characters owned by the popular Nickelodeon children's cable television channel.
In October 2000, soon after Eckert came onboard, the Learning Co. was sold to Gores Technology Group, a corporate turnaround firm, for no cash and an unspecified share of future Learning Co. earnings. Mattel agreed to pay off $500 million in Learning Co. debt, and losses from the sale led to a net loss for 2000 of $430.9 million. The consequences of this disastrous acquisition--widely regarded as one of the biggest corporate blunders ever--were not over yet. Numerous lawsuits were filed by shareholders in 1999 and 2000 alleging mismanagement and breach of fiduciary duty by company executives and the board of directors. In November 2002 Mattel agreed to pay $122 million to settle these actions.
Eckert took a conservative approach to running Mattel, concentrating more on returning the firm to profitability than on seeking huge new blockbuster toys that would greatly increase revenues. As a result, revenues were relatively flat during his first two years at the helm (2001 and 2002), but net income figures were decent: $298.9 million and $230.1 million, respectively. Among the successes during this period were the Harry Potter products, a line of products derived from the Nickelodeon hit Sponge Bob Square Pants, and a line of big-eyed talking dolls called Diva Starz. As part of Eckert's strategy of expanding Mattel's core brands into additional product categories, the company in October 2001 released the first Barbie video, Barbie in the Nutcracker, which sold quite well. Overall, however, sales of the Barbie line were on the decline under pressure from new competitive dolls, particularly MGA Entertainment's hip Bratz dolls, which debuted in 2001. In the computer games sector, Mattel took a new partnership-oriented approach, entering into license agreements with computer games makers Vivendi Universal and T-HQ Inc. in 2001 for the development of interactive software games based on such Mattel brands as Barbie, American Girl, Hot Wheels, and Fisher-Price. On the licensing side, Mattel gave up licenses for toys based on new Disney movies, which tended to be hit-or-miss propositions, but kept the rights to established Disney characters such as Mickey and Minnie Mouse. Other early Eckert initiatives included cutting costs, speeding up toy production turnaround time, overhauling the supply chain, and placing additional emphasis on international sales.
In early 2003 Mattel streamlined its operations, consolidating its Boys/Entertainment and Girls divisions into a new business unit known as Mattel Brands. The Pleasant Company was separated from the Girls division and placed into a new unit called American Girl Brands. The firm's third unit, Fisher-Price Brands, remained unchanged. Meantime, while Mattel's doll lines were contending with the upstart Bratz dolls, Fisher-Price was under pressure from another upstart, LeapFrog Enterprises, Inc., which quickly became a leader in electronic learning toys after its founding in the mid-1990s. Fisher-Price responded in August 2003 with the launch of the PowerTouch system, through which youngsters could play--and learn--on interactive-learning books. PowerTouch competed directly with LeapFrog's popular LeapPad system, and LeapFrog was troubled enough by similarities between the two products to file a patent-infringement lawsuit against Fisher-Price in October.
Although some analysts were disappointed with the lack of revenue growth at Mattel, particularly the flat to declining sales in the United States, Eckert remained committed to improving bottom-line profits rather than the top line. International sales were growing at a double-digit percentage pace, enabling Mattel to expand its overall sales in the mid-single-digit range, which was actually a little better than the industry norm. Perhaps in the first decade of the 21st century the more measured approach of Eckert would serve Mattel better than the approaches of the leaders of the three previous decades--particularly because each of these decades included a major crisis that called into question the company's future.
Principal Subsidiaries: Fisher-Price Inc.; Mattel Factoring, Inc.; Mattel International Holdings B.V. (Netherlands); Mattel Investment, Inc.; Mattel Overseas, Inc.; Mattel Sales Corporation; Pleasant Company.
Principal Operating Units: Mattel Brands; Fisher-Price Brands; American Girl Brands.
Principal Competitors: Hasbro, Inc.; JAKKS Pacific, Inc.; LEGO Company; LeapFrog Enterprises, Inc.; Bandai Co., Ltd.; MGA Entertainment; TOMY Company, Ltd.
OVERALL
Beta: 0.97
Market Cap (Mil.): $9,297.98
Shares Outstanding (Mil.): 347.59
Annual Dividend: 0.92
Yield (%): 3.44
FINANCIALS
MAT.O Industry Sector
P/E (TTM): 14.48 24.19 18.17
EPS (TTM): 12.24 -- --
ROI: 17.53 4.83 1.56
ROE: 26.16 5.12 2.40
Statistics:
Public Company
Incorporated: 1948
Employees: 25,000
Sales: $4.89 billion (2002)
Stock Exchanges: New York Pacific
Ticker Symbol: MAT
NAIC: 339931 Doll and Stuffed Toy Manufacturing; 339932 Game, Toy, and Children's Vehicle Manufacturing
Key Dates:
1945: Ruth and Elliot Handler and Harold "Matt" Matson form a partnership called Mattel Creations, making and selling first picture frames and later dollhouse furniture; Matson is soon forced to sell out because of ill health.
1947: The "Uke-A-Doodle" becomes the first of many hit Mattel toys.
1948: The company is incorporated in California.
1955: In a revolutionary move, Mattel becomes a year-round sponsor of the Walt Disney television program Mickey Mouse Club.
1959: Mattel introduces the Barbie doll, which will eventually become the best-selling toy ever.
1960: Mattel goes public.
1963: The company gains a listing on the New York Stock Exchange.
1968: Hot Wheels miniature model cars, another spectacular hit, are introduced.
1974: The Handlers are ousted from the company after investigators find that the company issued false and misleading financial reports.
1983: The company verges on bankruptcy with a $394 million loss after an ill-advised venture into video games.
1987: John W. Amerman, who has been named chairman, revitalizes the company through an emphasis on core brands.
1988: Mattel revives its collaboration with Disney.
1993: Fisher-Price Inc., the world leader in infant and preschool toys, is acquired.
1997: Mattel buys out Tyco Toys, Inc., the third largest U.S. toy maker.
1998: Pleasant Company, maker of the American Girl brand, is acquired.
1999: The Learning Co., a major player in computer games and educational software, is acquired for $3.5 billion.
2000: Mattel sells off Learning Co. at a huge loss; the company reports a net loss for the year of $430.9 million.
Name Age Since Current Position
Eckert, Robert 56 2000 Chairman of the Board, Chief Executive Officer
Farr, Kevin 53 2000 Chief Financial Officer
Stockton, Bryan 57 2011 Chief Operating Officer
Normile, Robert 51 2011 Executive Vice President, Chief Legal Officer and Secretary
Debrowski, Thomas 60 2000 Executive Vice President - Worldwide Operations
Kaye, Alan 57 2011 Executive Vice President, Chief Human Resources Officer
Brothers, Ellen 55 2000 Executive Vice President, President - American Girl
Massingberd, Geoff 53 2011 Executive Vice President - International
Allmark, David 47 2011 Executive Vice President - Fisher-Price Brands
Kilpin, Timothy 50 2011 Executive Vice President - Mattel Brands El Segundo
Schaden, Christopher 58 2011 Executive Vice President, North America
Sadigh, Mandana 51 2010 Senior Vice President, Treasurer
Topham, H. Scott 50 2005 Senior Vice President, Corporate Controller
Friedman, Tully 69 1984 Independent Director
Sinclair, Christopher 60 1996 Independent Director
Rich, Andrea 67 1998 Independent Director
Sullivan, G. Craig 70 2001 Independent Director
White, Kathy 61 2001 Independent Director
Dolan, Michael 64 2004 Independent Director
Sargent, Ronald 55 2004 Independent Director
Ng, Dominic 52 2006 Independent Director
Fergusson, Frances 66 2006 Independent Director
Prabhu, Vasant 51 2007 Independent Director
Scarborough, Dean 55 2007 Independent Director
Address:
333 Continental Boulevard
El Segundo, California 90245-5012
U.S.A.
Mattel, Inc. (Mattel), incorporated in 1948, designs, manufactures, and markets a broad variety of toy products worldwide through sales to its customers and directly to consumers. The Company has two segments: Domestic and International. Mattel’s portfolio of brands and products are grouped in categories, such as Mattel Girls & Boys brands, including Barbie fashion dolls and accessories (Barbie), Polly Pocket, Little Mommy, Disney Classics, and Monster High (collectively Other Girls Brands), Hot Wheels, Matchbox, Battle Force 5, and Tyco R/C vehicles and play sets (collectively Wheels), and CARS, Radica, Toy Story, Max Steel, WWE Wrestling, and Batman products, and games and puzzles (collectively Entertainment); Fisher-Price brands, including Fisher-Price , Little People, BabyGea, and View-Master (collectively Core Fisher-Price), Dora the Explorer, Go Diego Go!, Thomas and Friends, Sing-a-ma-jigs, and See ‘N Say (collectively Fisher-Price Friends), and Power Wheels, and American Girl Brand, including My American Girl, the historical collection, and Bitty Baby.
Domestic Segment
The Domestic segment develops toys that it markets and sells through the Mattel Girls & Boys Brands US, Fisher-Price Brands US, and American Girl Brands segments. In the Mattel Girls & Boys Brands US segment, Barbie includes brands such as Barbie fashion dolls and accessories, and Polly Pocket, Little Mommy, Disney Classics, and Monster High are included within
Other Girls Brands. Wheels include Hot Wheels, Matchbox, Battle Force 5, and Tyco R/C vehicles and play sets. Entertainment includes CARS, Radica, Toy Story, WWE Wrestling, and Batman products, as well as games and puzzles.
The Fisher-Price Brands US segment includes Fisher-Price, Little People, BabyGear, View-Master, Dora the Explorer, Go Diego Go! , Thomas and Friends, Mickey Mouse Clubhouse, Handy Manny, See ‘N Say, Sing-a-ma-jigs, The Penguins of Madagascar, Jungle Junction, and Power Wheels.The American Girl Brands segment is a direct marketer, children’s publisher, and retailer for its flagship line of historical dolls, books, and accessories, as well as the My American Girl and Bitty Baby brands.
International Segment
Products marketed by the International segment are generally the same as those developed and marketed by the Domestic segment, with the exception of American Girl Brands, although some are developed or adapted for particular international markets. Mattel’s products are sold directly to retailers and wholesalers in European, Latin American, and Asian countries, and in Australia, Canada, and New Zealand, and through agents and distributors in those countries where Mattel has no direct presence. Mattel’s As of December 31, 2010, the International segment revenue represented 46% of worldwide consolidated gross sales. Within the International segment, Mattel operates in four regional groups: Europe, Latin America, Asia Pacific and Others.
The Company competes with Bandai, Hasbro, Jakks Pacific, Playmobile, Leap Frog, Lego, Spin Master, MGA Entertainment, and VTech.
Robert A. Eckert was named chairman and CEO in May 2000. He had been the head of Philip Morris Companies Inc.'s Kraft Foods unit. In the meantime, Mattel in July 1999 had entered into a global marketing alliance with Bandai Co., Ltd., Japan's largest toy maker and best known at the time for its line of Power Rangers action figures and the Tamagotchi electronic virtual pets. Initially, the alliance involved Bandai marketing Mattel's toys in Japan and Mattel doing likewise for Bandai in Latin America. In February 2000 Mattel reached a deal with Warner Bros., making Mattel the master toy licensee for the best-selling Harry Potter book series and for the first two Harry Potter feature films. Mattel that same year gained the multiyear licensing rights to characters owned by the popular Nickelodeon children's cable television channel.
In October 2000, soon after Eckert came onboard, the Learning Co. was sold to Gores Technology Group, a corporate turnaround firm, for no cash and an unspecified share of future Learning Co. earnings. Mattel agreed to pay off $500 million in Learning Co. debt, and losses from the sale led to a net loss for 2000 of $430.9 million. The consequences of this disastrous acquisition--widely regarded as one of the biggest corporate blunders ever--were not over yet. Numerous lawsuits were filed by shareholders in 1999 and 2000 alleging mismanagement and breach of fiduciary duty by company executives and the board of directors. In November 2002 Mattel agreed to pay $122 million to settle these actions.
Eckert took a conservative approach to running Mattel, concentrating more on returning the firm to profitability than on seeking huge new blockbuster toys that would greatly increase revenues. As a result, revenues were relatively flat during his first two years at the helm (2001 and 2002), but net income figures were decent: $298.9 million and $230.1 million, respectively. Among the successes during this period were the Harry Potter products, a line of products derived from the Nickelodeon hit Sponge Bob Square Pants, and a line of big-eyed talking dolls called Diva Starz. As part of Eckert's strategy of expanding Mattel's core brands into additional product categories, the company in October 2001 released the first Barbie video, Barbie in the Nutcracker, which sold quite well. Overall, however, sales of the Barbie line were on the decline under pressure from new competitive dolls, particularly MGA Entertainment's hip Bratz dolls, which debuted in 2001. In the computer games sector, Mattel took a new partnership-oriented approach, entering into license agreements with computer games makers Vivendi Universal and T-HQ Inc. in 2001 for the development of interactive software games based on such Mattel brands as Barbie, American Girl, Hot Wheels, and Fisher-Price. On the licensing side, Mattel gave up licenses for toys based on new Disney movies, which tended to be hit-or-miss propositions, but kept the rights to established Disney characters such as Mickey and Minnie Mouse. Other early Eckert initiatives included cutting costs, speeding up toy production turnaround time, overhauling the supply chain, and placing additional emphasis on international sales.
In early 2003 Mattel streamlined its operations, consolidating its Boys/Entertainment and Girls divisions into a new business unit known as Mattel Brands. The Pleasant Company was separated from the Girls division and placed into a new unit called American Girl Brands. The firm's third unit, Fisher-Price Brands, remained unchanged. Meantime, while Mattel's doll lines were contending with the upstart Bratz dolls, Fisher-Price was under pressure from another upstart, LeapFrog Enterprises, Inc., which quickly became a leader in electronic learning toys after its founding in the mid-1990s. Fisher-Price responded in August 2003 with the launch of the PowerTouch system, through which youngsters could play--and learn--on interactive-learning books. PowerTouch competed directly with LeapFrog's popular LeapPad system, and LeapFrog was troubled enough by similarities between the two products to file a patent-infringement lawsuit against Fisher-Price in October.
Although some analysts were disappointed with the lack of revenue growth at Mattel, particularly the flat to declining sales in the United States, Eckert remained committed to improving bottom-line profits rather than the top line. International sales were growing at a double-digit percentage pace, enabling Mattel to expand its overall sales in the mid-single-digit range, which was actually a little better than the industry norm. Perhaps in the first decade of the 21st century the more measured approach of Eckert would serve Mattel better than the approaches of the leaders of the three previous decades--particularly because each of these decades included a major crisis that called into question the company's future.
Principal Subsidiaries: Fisher-Price Inc.; Mattel Factoring, Inc.; Mattel International Holdings B.V. (Netherlands); Mattel Investment, Inc.; Mattel Overseas, Inc.; Mattel Sales Corporation; Pleasant Company.
Principal Operating Units: Mattel Brands; Fisher-Price Brands; American Girl Brands.
Principal Competitors: Hasbro, Inc.; JAKKS Pacific, Inc.; LEGO Company; LeapFrog Enterprises, Inc.; Bandai Co., Ltd.; MGA Entertainment; TOMY Company, Ltd.
OVERALL
Beta: 0.97
Market Cap (Mil.): $9,297.98
Shares Outstanding (Mil.): 347.59
Annual Dividend: 0.92
Yield (%): 3.44
FINANCIALS
MAT.O Industry Sector
P/E (TTM): 14.48 24.19 18.17
EPS (TTM): 12.24 -- --
ROI: 17.53 4.83 1.56
ROE: 26.16 5.12 2.40
Statistics:
Public Company
Incorporated: 1948
Employees: 25,000
Sales: $4.89 billion (2002)
Stock Exchanges: New York Pacific
Ticker Symbol: MAT
NAIC: 339931 Doll and Stuffed Toy Manufacturing; 339932 Game, Toy, and Children's Vehicle Manufacturing
Key Dates:
1945: Ruth and Elliot Handler and Harold "Matt" Matson form a partnership called Mattel Creations, making and selling first picture frames and later dollhouse furniture; Matson is soon forced to sell out because of ill health.
1947: The "Uke-A-Doodle" becomes the first of many hit Mattel toys.
1948: The company is incorporated in California.
1955: In a revolutionary move, Mattel becomes a year-round sponsor of the Walt Disney television program Mickey Mouse Club.
1959: Mattel introduces the Barbie doll, which will eventually become the best-selling toy ever.
1960: Mattel goes public.
1963: The company gains a listing on the New York Stock Exchange.
1968: Hot Wheels miniature model cars, another spectacular hit, are introduced.
1974: The Handlers are ousted from the company after investigators find that the company issued false and misleading financial reports.
1983: The company verges on bankruptcy with a $394 million loss after an ill-advised venture into video games.
1987: John W. Amerman, who has been named chairman, revitalizes the company through an emphasis on core brands.
1988: Mattel revives its collaboration with Disney.
1993: Fisher-Price Inc., the world leader in infant and preschool toys, is acquired.
1997: Mattel buys out Tyco Toys, Inc., the third largest U.S. toy maker.
1998: Pleasant Company, maker of the American Girl brand, is acquired.
1999: The Learning Co., a major player in computer games and educational software, is acquired for $3.5 billion.
2000: Mattel sells off Learning Co. at a huge loss; the company reports a net loss for the year of $430.9 million.
Name Age Since Current Position
Eckert, Robert 56 2000 Chairman of the Board, Chief Executive Officer
Farr, Kevin 53 2000 Chief Financial Officer
Stockton, Bryan 57 2011 Chief Operating Officer
Normile, Robert 51 2011 Executive Vice President, Chief Legal Officer and Secretary
Debrowski, Thomas 60 2000 Executive Vice President - Worldwide Operations
Kaye, Alan 57 2011 Executive Vice President, Chief Human Resources Officer
Brothers, Ellen 55 2000 Executive Vice President, President - American Girl
Massingberd, Geoff 53 2011 Executive Vice President - International
Allmark, David 47 2011 Executive Vice President - Fisher-Price Brands
Kilpin, Timothy 50 2011 Executive Vice President - Mattel Brands El Segundo
Schaden, Christopher 58 2011 Executive Vice President, North America
Sadigh, Mandana 51 2010 Senior Vice President, Treasurer
Topham, H. Scott 50 2005 Senior Vice President, Corporate Controller
Friedman, Tully 69 1984 Independent Director
Sinclair, Christopher 60 1996 Independent Director
Rich, Andrea 67 1998 Independent Director
Sullivan, G. Craig 70 2001 Independent Director
White, Kathy 61 2001 Independent Director
Dolan, Michael 64 2004 Independent Director
Sargent, Ronald 55 2004 Independent Director
Ng, Dominic 52 2006 Independent Director
Fergusson, Frances 66 2006 Independent Director
Prabhu, Vasant 51 2007 Independent Director
Scarborough, Dean 55 2007 Independent Director
Address:
333 Continental Boulevard
El Segundo, California 90245-5012
U.S.A.