RC2 says third-quarter profit rises amid cost cuts

OAK BROOK, Ill. (AP) — RC2 Corp. said Tuesday that its third-quarter profit rose 22.4 percent to $13.6 million as the toy designer and marketer cut costs in the face of a 4.8 percent sales decline.

It also raised its full-year profit outlook.

The company's net income for the three months ended Sept. 30 was 66 cents a share, compared to a profit of $11.1 million, or 64 cents a share, a year earlier.

Revenue in the July-September quarter fell to $126.5 million from $132.9 million a year earlier.

Analysts surveyed by Thomson Reuters, on average, were expecting third-quarter earnings of 58 cents a share on revenue of $131 million.

The company's selling, general and administrative expenses fell to $36.9 million, or 29.1 percent of net sales, in the third quarter 2009, compared with $41.0 million, or 30.9 percent of net sales, in 2008's third quarter 2008.

Going forward, the company said it now expects that full-year 2009 net income will be higher than the $23.5 million reflected in its previous guidance and will range from roughly $25 million to $27 million, or $1.30 to $1.40 per fully diluted share. Analysts were expecting full-year earnings of $1.35 a share.