Spin Master earnings down as tariffs, supply chain congestion disrupt quarter
Posted November 5, 2019 5:53 pm.
TORONTO — Spin Master Corp. says earnings dropped in the third quarter as several challenges, including U.S. tariffs on Chinese production, affected results.
The Toronto-based toy manufacturer, which reports in U.S. dollars, says it earned $92.1 million, or 89 cents per share in the quarter ending Sept. 30, compared with $107.9 or $1.06 per share in the same quarter last year.
It says adjusted net income was $93.2 million, or 90 cents per share, compared with $117.7 million or $1.15 per share last year.
Revenue was $548.1 million, down from $620 million for the third quarter last year.
Analysts had expected adjusted income of $129 million, or $1.23 per share, and revenue of $632.2 million, according to financial markets data firm Refinitiv.
The company says efforts to shift production out of China and warehouse consolidation created congestion in its U.S. supply chain to push a significant volume of shipments and orders to the fourth quarter.
This report by The Canadian Press was first published Nov. 5, 2019.
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