Mattel Inc., the world''s largest toymaker, will
take a $30 million charge on recall of 967,000 Chinese-made
toys amid concerns they may contain hazardous levels
of lead paint.
recall involves toys featuring licensed characters like
`Elmo'' and `Dora the Explorer'' made between April 19
and July 6 and sold in its Fisher-Price unit stores
the US, Mattel said.
recall will mean a $30 million reduction in Mattel''s
pre-tax operating profit, the company said in a regulatory
filing. Mattel said the costs will be added to the second
had reported second-quarter revenue of $1.02 billion,
with $410.4 million coming from Fisher-Price.
Segundo Calif.-based Mattel Inc. said of the nearly
one million products recalled from the US market, about
30 per cent had reached store shelves.
toys were made by a contract manufacturer in China for
the company''s Fisher-Price unit.
manufacturer used non-approved paint that may contain
too much lead, which has been linked to many children''s
health problems, including brain damage, according to
US health authorities.
said it was reviewing procedures involving all of its
Chinese-made products and that additional issues could
surface in the future. Mattel is also expanding its
testing programmes to ensure that painted toys from
third-party manufacturers are safe before they are sent