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Last Updated: Monday, 15 October 2007, 14:45 GMT 15:45 UK
Mattel profit hit by toy recalls
Mattel HQ
Mattel says it was mainly to blame for the recalls
Mattel has seen a dip in quarterly profits - caused by the cost of a massive recall of some of its toys.

Net profit fell 1% to $236.8m (116m) in the three months to the end of September, the company said.

The figures included charges of about $40m related to the recall of more than 20 million toys from China which had too much lead or loose magnets.

Mattel has admitted that most of the toys recalled had "design flaws" and that Chinese makers were not to blame.

Sales climbed 3% on the same period a year ago, to $1.84bn.

Responsibility

The recall of the toys - which included Barbie items - led some in the US to call for limits on the number of Chinese imports.

This followed other product scares over Chinese food, toothpaste and tyres.

Mattel has introduced mandatory audits on products coming out of Asia as well as tougher testing procedures.

But the company has said that it should shoulder the burden of responsibility for the safety breaches.

The firm last month said that it believed it had overreacted, recalling more products than was justified, and that items which may have met US safety standards had been taken off the shelves.



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