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Spin Master earnings down as tariffs, supply chain congestion disrupt quarter

A person is silhouetted at the Spin Master toy and entertainment company in Toronto on Tuesday, January 29, 2019. THE CANADIAN PRESS/Nathan Denette

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.

Companies in this story: (TSX:TOY)

 

The Canadian Press