Mattel 2005 Annual Report Download - page 3
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Please find page 3 of the 2005 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.Theyear2005wasayearofmixedresults.Wehadmanysuccesses,butwealsofacedourshareof
challengeswithsalesdecreasesinourBarbie®brandandpressuresfromexternalcosts,includinghigher
rawmaterialandtransportationcostsdrivenbyrecordpetroleumprices.
Despitethesechallenges,thereweresomeverybrightspotsinour
portfolio,includingrecordyearsforAmericanGirl,Fisher-Priceand
ourinternationalbusiness.
AmericanGirlhaditsbestyearyet,growing15percenttomorethan$400millioninsales.Fueled
bythesuccessofFisher-Price®Friends,andinparticularDoratheExplorer,™Fisher-Pricecontinuedto
growworldwide.InternationalgrowthwasdrivenbyoursuccessintheAsia-PacificandLatinAmerica
regions.Additionally,theBatman™propertyprovedtobemorethanjustaboxofficehit,andgrosssales
inourOtherGirlscategorygrew25percent,ledbynewintroductionsthatincludedDisneyCinderella,
PixelChix™andWinx.™
*
Despitethebusinesschallengesweencounteredin2005,westillgenerated$467millionincashflow
fromoperationsduetoindustry-leadingnetincomeandstableworkingcapital.Wealsotightlymanaged
capitalexpenditures.Weutilizedourcashtorewardlong-terminvestors,firstbyincreasingthedividendby
11percentto50centspershare,andsecondbytakingadvantageofwhatwebelievedwasanundervalued
stockpricebyspending$500milliontorepurchaseourshares.Infact,overthelastthreeyears,wehave
returnedmorethanoneandahalfbilliondollarstoshareholdersintheformofdividendsandshare
repurchases.Andwestillended2005withastrongbalancesheetthatincludedjustabout$1billionincash.
Earlierin2006,westreamlinedourworkforce,primarilyatourcompany’sworldwideheadquarters,
withthemajorityoftheapproximately200jobreductionsrelatingtotheconsolidationoftheMattel
GirlsandBoysBrandsandFisher-PriceBrandsdivisions.Thisdecisionwasanextremelydifficultone,
particularlyconsideringtheimpactthisactionhadonouremployeesandtheirfamilies,butnecessary
tocreatea“OneMattel”structureandeliminateredundanciesforaleaner,moreagileorganization.
Thefoundationisnowinplace,andwearereadytobeginthenext
chapterinMattel’sprogress:WIN.
to our shareholders:
2005BROUGHTBOTHCHALLENGEANDSUCCESS.
*InformationrequiredbySECRegulationGregardinggrosssales,anon-GAAPfinancialmeasure,appearsonpage48oftheenclosedMattel,Inc.AnnualReportonForm10-K