How Are Toy Makers Doing Financially After Last Year’s Record Toy Recalls?

Mattel reported a loss for the fist quarter of 2008 due to lower sales of Fisher-Price, legal expenses and higher costs. They are expecting to increase toy prices this year to raise profits.

Hasbro reported a strong first quarter profit on sales of the Transformers , Littlest Pet Shop and Playskool toys.

RC2 plagued with recalls last year on its Thomas and Friends toys reported a lower than expected quarterly profit.

Jakks Pacific maker of Fly Wheels which were recalled last year also reported lower profits due to litigation and product testing costs.