EARNINGS : Mattel’s Quarterly Earnings Up Fivefold

Mattel Inc., the maker of Barbie dolls and other toys, said it earned $16.6 million in the second quarter, an increase of more than fivefold from the same period a year earlier.

The Hawthorne-based company said sales for three months ending July 1 rose 31% to $272.3 million. In its second quarter last year, Mattel earned $3.2 million on sales of $207.1 million.

The company said Disney preschool toys and its long-established Barbie dolls and Hot Wheels racing cars led its sales and earnings growth. Mattel said orders for toys were 25% higher than last year. Though orders can be canceled at any time, the increase indicates a strong demand for Mattel toys.

“Our strategy of increasing sales and worldwide market share in 1989, while maintaining the cost control and asset programs put in place last year, is clearly working,” said John W. Amerman, Mattel chairman and chief executive.

Mattel’s gains come during a sluggish growth period for the toy industry. Most industry analysts expect overall sales to grow by just 5% this year since there is no new “hit” toy to capture children’s imagination.

Belt-Tightening Measures

Mattel’s results also mark a big improvement over two years ago, when the company slashed its work force and closed factories to offset losses triggered by a steep decline in sales of its Masters of the Universe action figures and Rainbow Brite dolls.

Those belt-tightening measures helped give Mattel a $35.9-million profit last year after a $113-million loss in 1987. Toy industry analysts expect Mattel to double its profit this year, to around $72 million.