Mattel, Inc. (MAT)

SapphireSeas (80.28) Submitted: 8/14/07 10:41 AM : Start Price: $21.93 MAT Score: 7.86

8/14/2007, Reuters:

Mattel recalls 9 million toys made in China

"Mattel Inc., the largest U.S. toy company, launched a national advertising campaign on Tuesday, assuring consumers it is on top of product safety amid reports of an impending second big recall of its Chinese-made toys.

"Our long record of safety at Mattel is why we're one of the most trusted names with parents," Eckert wrote. "And I am confident that the actions we are taking now will maintain that trust."

Mattel is set to announce a recall of hundreds of thousands of Chinese-made toys as early as Tuesday, according to published reports.

The reports say the recall will include a die-cast car that may contain lead paint, as well as toys with magnets that can be harmful to children if swallowed.

Earlier this month, Mattel's Fisher-Price unit recalled about 1.5 million preschool toys made by China-based contract manufacturer Lida Toy Co. The global recall included products based on popular preschool characters from "Sesame Street" and "Dora the Explorer."

The recall was Mattel's largest since 1998, when it recalled some 10 million Power Wheels vehicles made by Fisher-Price, and the company said it expected to take a $30 million charge from the action."

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