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RC2 has sluggish Q2

Toyco RC2 Corporation suffered a 4% decrease in net sales for Q2, generating US$89.2 million in revenue for the period.
July 31, 2008

Toyco RC2 Corporation suffered a 4% decrease in net sales for Q2, generating US$89.2 million in revenue for the period.

The company reported a net loss of US$6.4 million in Q2 as compared with a net income of US$2.5 million during the same period last year.

The loss is attributed to recall-related costs incurred in the quarter, including a one-time cash payment of US$15 million to HIT Entertainment.

Net sales for the six months ended June 30, 2008 decreased approximately 11% to US$182.5 million, compared with $205.6 million in 2007.

RC2 CEO Curt Stoelting said that the Q2 results showed an improvement over the previous quarter and that the acquisition of children’s publishing company CPD should be completed in Q3 and will bolster the bottom line for the rest of the fiscal year.

About The Author
Gary Rusak is a freelance writer based in Toronto. He has covered the kids entertainment industry for the last decade with a special interest in licensing, retail and consumer products. You can reach him at garyrusak@gmail.com

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