Mattel said Thursday that continuing weakness in the worldwide toy market contributed to a $14.2-million net loss and an 8% drop in sales for the quarter ending Sept. 26.
The Hawthorne-based toy maker reported the third-quarter loss was also due to a charge against earnings of $19.6 million, associated primarily with the refinancing of notes due in 1989. The nation's No. 2 toy manufacturer recorded net income of $16.3 million for the same period in 1986.
The company had a net loss of $12.4 million for the first nine months of 1987, compared to net income of $18.6 million for the same period a year earlier. Third-quarter sales dropped from $344.4 million to $318.1 million.
Toy makers in general have suffered from a lack of exciting new products, and Mattel, in particular, has been increasingly dependent on sales of its mainstay Barbie doll line to make up for fading sales of such products as the Masters of the Universe collection of action figures.