• October 16, 2007

Mattel, at the epicenter of a massive recall of toys made in China, says that U.S. sales fell 2% in the third quarter, with worldwide sales gaining 3%.

In its core brand divisions, Barbie sales dropped 4% worldwide, Hot Wheels gained 10%, Fisher-Price jumped 19%, and sales at its American Girl brands came in flat.

The company says it is taking a charge of $40 million related to the recalls, which includes legal, administrative and advertising expenses. Net income for the quarter also declined slightly, to $236.8 million, compared with $239.0 million, or $0.62 per share.

--Sarah Mahoney