Mattel imposed ‘mid-single digit’ price increases for its product...

than those of three years ago, but below those of 2008, when Mattel was saddled with rising materials costs. Mattel also lost some revenue in the recent bankruptcies of KB Toys and Woolworth’s in the U.K., but it wasn’t a “sizeable” amount, Chief Financial Officer Kevin Farr said. Mattel incurred about $52 million in incremental legal costs in fiscal 2008, about $37 million of which was tied to its battle with MGA Entertainment. A jury found last July that MGA’s Bratz doll had been conceived by a designer when he was employed by Mattel. A federal judge in January ruled that MGA could continue selling the dolls through Dec. 31 before turning the franchise over to Mattel. A previous court ruling would have forced MGA to relinquish control this month, MGA has said. Mattel has requested that Bratz revenue be put in the hands of a court-appointed body that would collect it as MGA pursues an appeal. “There has been no indication of a genuine interest in settling,” Mattel CEO Robert Eckert said. Mattel also paid $12 million as part of a settlement reached with attorneys general in 38 states, resolving a 16-month investigation into a 2007 voluntary recall of its toys for excessive lead paint. Mattel’s Q4 net income narrowed to $176.4 million from $328.5 million as revenue dropped to $1.94 billion from $2.18 billion. Gross profit slipped to 46 percent from 48 percent. In a restructuring, Mattel is cutting 1,000 jobs and dropping capital spending from the $199 million spent last year adding “low level” automation to some plants in Asia and revamping its design studio in El Segundo, Calif., Farr said. Sales of Mattel Boys and Girls brands dropped in Q4 to $1.11 billion from $1.35 billion a year earlier, while those from Fisher- Price slipped to $754.2 million from $840.3 million, the company said. In Mattel’s entertainment business, which includes Radica CE-related toys, Q4 gross sales fell 17 percent, the company said.