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Mattel Beats

It finds nonmaterial errors in a stock option review.
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Mattel (MAT) - Get Mattel, Inc. Report beat third-quarter earnings targets and said a stock option review found errors it deemed nonmaterial.

The El Segundo, Calif., toymaker made $239 million, or 62 cents a share, for the quarter ended Sept. 30, up from the year-ago $225 million, or 55 cents a share. Sales rose 7% from a year ago to $1.79 billion.

Analysts surveyed by Thomson Financial were looking for a 61-cent profit on sales of $1.62 billion.

Mattel said a review of stock option grants since 1993 found that there had been no backdating of stock option grants, no misconduct or manipulation associated with stock option grant dates, no intentional deviations from generally accepted accounting principles, and no material inaccuracies with respect to the current or historical financial statements.

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The review did identify some administrative procedural deficiencies which resulted in unintentional errors associated with incorrect accounting measurement dates for certain grants made to the general population of employees prior to 2003. Fixing those errors led to a $13 million reduction of third-quarter sales and a 3-cent hit to earnings.