Mattel 1999 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 1999 Mattel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 48

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48

LETTER TO SHAREHOLDERS
The bad news for 1 9 9 9 unfortunately has overshadowed the good news. We are all painfully
aware of the negative effect the acquisition of The Learning Company and its subsequent perfor-
mance had on our results for 1 9 9 9. These well-reported difficulties obscured the fundamentally
strong performance of Mattel’s core brands and sectors. In the seasonally important fourth
quarter, core product sales were up 1 3 percent in the U.S. – Barbie grew by 1 1 percent and
Fisher-Price by 1 4 percent. Mattel Entertainment was up 70 percent, Wheels recorded a world-
wide sales increase of 6 percent and Pleasant Company achieved a 4 percent growth in sales.
These solid performances represent a strong endorsement of Mattel’s strategy, and serve as the
underpinning for our optimism for the future. This gives us confidence that Mattel remains a
truly great company, with the very best people, a compelling underlying strategy and resources
for sustainable growth.
OUR CORE BUSINESS: BRANDS AND MANAGEMENT
In February, the Board of Directors created the Office of the Chief Operating Officer comprised
of the five presidents who are in charge of Mattel’s brands: Adrienne Fontanella for Barbie and
Girls’ products; Matt Bousquette, Boys/ Entertainment; Neil Friedman, Infant and Preschool
including Fisher-Price; Bernard Stolar, Mattel Interactive; and Pleasant Rowland, Founder and
President of Pleasant Company and creator of American Girl. We could not ask for five more
talented individuals to lead the company’s operations at this critical time.
1
Mattel’s five business unit presidents include,
left to right: Bernard Stolar, President, Mattel
Interactive; Pleasant Row land, President,
Pleasant Company; Neil Friedman, President,
Fisher-Price Brands; Matt Bousquette, President,
Boys/ Entertainment; and Adrienne Fontanella,
President, Girls/ Barbie.