Toy Recall

wendy · Toy Recall

Mattel Recalls Chinese Toys, Second Time in Two Weeks (Update2)

By Heather Burke

Polly Pocket Polly Wheels on display Aug. 14 (Bloomberg) -- Mattel Inc., the world's biggest toymaker, is recalling Chinese-made products for the second time in two weeks on concern that children will swallow magnets attached to the toys.

The recall includes 18.2 million Barbie, Polly Pocket, Batman and other toys with magnets, the El Segundo, California- based company today in a statement. Mattel also removed 436,000 die-cast vehicles with lead paint.

The recalls might force Mattel to find new sources of low- cost goods as China struggles to repair its reputation as an exporter. Mattel is pulling toys off the shelves going into the holiday season, which accounted for 69 percent of sales last year.

``I don't think parents are going to refrain from buying Mattel toys,'' said Bob Goldsborough, who helps manage $14.9 billion, including 4.3 Mattel shares, at Ariel Capital Management LLC in Chicago. ``Kids are going to get toys one way or another over the holidays.''

Mattel gets 65 percent of its toys from China. Chinese goods including wooden railroad toys and tainted pet food have been recalled in recent months, and the U.S. banned some Chinese toothpaste.

``Investors and consumer organizations are going to push for better testing of finished goods coming out of contract manufacturers in China,'' Goldsborough said.

Mattel, the maker of Hot Wheels vehicles and Elmo dolls, fell 50 cents, or 2.1 percent, to $23.07 as of 12:08 p.m. in New York Stock Exchange composite trading. Before today, the stock was up 4 percent.

No Injuries

No injuries were reported from the products recalled today, U.S. Consumer Product Safety Commission chief Nancy Nord said in a news conference. About 9.75 million of the recalled toys are in the U.S.

Costs from today's recall are included in a $30 million reduction in second-quarter operating income announced Aug. 2, Mattel Chief Executive Officer Bob Eckert said in an interview.

Mattel said on Aug. 2 it was recalling 1.5 million Fisher- Price preschool products, including Chinese-made Sesame Street and Dora the Explorer toys, because they may contain excessive levels of lead.

The recall of the magnetic toys, which were manufactured between January 2002 and Jan. 31, 2007, expands on a call to remove eight products removed last year. Eckert said new standards have been developed for magnetic toys, and Mattel wanted to apply them retroactively. Most of the items recalled today are no longer on store shelves, he said.

``We understand parents' concerns,'' Eckert said. Mattel will exercise the ``most rigorous'' standards in the toy industry, he said.
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Last Updated: August 14, 2007 12:19 EDT

pixie

I think Mattel need a rethink on the manufacture of their toys. This is the second recall in 2 weeks.

Thanks for posting this Wendy.