Etch A Sketch maker reports first profit in five years

Posted 12:40PM on Wednesday 20th March 2002 ( 23 years ago )

BRYAN, Ohio - The maker of Etch A Sketch and the Betty Spaghetty doll said it made money in 2001, its first profit in five years and biggest since it made $3.4 million in 1992. The Ohio Art Co. said on Tuesday that it made $3.1 million, or $3.60 per share, for the year that ended Jan. 31, 2002, compared with a loss of nearly $1.4 million, or $1.59 a share, last year. Sales fell about 1 percent from $46 million to $45.5 million. For the fourth quarter, the company said it made $312,000 on sales of $10 million compared with a loss of $297,000 on sales of $9.9 million the year before. The company's stock has soared in the past year on the improved results, going from a low of $3.60 to $32.25 recently. The company's stock was off $4 to $25 in trading Wednesday on the American Stock Exchange. The 94-year-old company credited the turnaround to a restructuring plan put in place the previous fiscal year. The restructuring included shifting production of Etch A Sketch from this northwest Ohio city to China, where most of the company's other products already were made. The company had lost a combined $10 million in the previous four years and was at least twice in technical default on loans. ------ On the Net: Ohio Art: http://www.world-of-toys.com

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