Mattel profit rises; Elmo and Barbie rule

The company's quarterly results were also buoyed by strong holiday sales of the T.M.X. Elmo -- the 10-year anniversary edition of the Tickle Me Elmo -- representing the strongest period for the plush red doll since its debut, Mattel Chairman and Chief Executive Robert Eckert said on a conference call.

Since Tickle Me Elmo's introduction in 1996, there have been numerous versions of the doll, including "Knows Your Name Elmo," which greeted a child by name.

"Ten years ago, we sold over a million units. And we said that T.M.X. would likely be the strongest thing since, and it was," Eckert said.

The company did not disclose exact sales figures for the dolls.

Fourth-quarter sales of its Fisher-Price line, including Little People toys and Power Wheels, rose 16 percent to $805 million.

The company said the results of electronic game maker Radica Games Ltd., acquired in October, were included in its fourth-quarter and full-year results.

Full-year revenue rose 9 percent to $5.65 billion, with international sales of its Hot Wheels, Matchbox and Tyco toys rising 5 percent.

Mattel's stock was trading at 18.43 times estimated 2007 earnings, a discount to rival Hasbro Inc. (HAS.N), which was trading at a multiple of 22.08. Hasbro is scheduled to report fourth-quarter results February 9.

Mattel shares have risen 55 percent since falling to a 52-week low of $15.50 about a year ago. The shares were up 2 cents to $23.98 in afternoon trading on the New York Stock Exchange, after rising 1.6 percent earlier in the session.