Toys Cos voice mixed outlook at pre-holiday event

By Justin Grant

NEW YORK, Oct 2 (Reuters) - Toy makers voiced mixed opinions about their holiday prospects at a preseason show on Tuesday, as the industry grapples with safety concerns following a slew of recalls of Chinese-made toys and worries over consumer spending.

More than 40 companies invaded the Jacob K. Javits Convention Center for the show, which featured the release of Toy Wishes Magazine's "Hot Dozen" toy list highlighting items expected to be the most popular for the holiday shopping season.

"We will see some softness this year ... The recall cloud I don't think will blow over altogether," said Soren Torp Laursen, president of Lego Americas, adding that he doesn't expect a repeat of last year's performance, which was one of the industry's strongest holiday seasons in recent years.

The holidays are the most crucial time of year for toy makers and sellers. Nearly 50 percent of all toy sales are rung up in the fourth quarter alone, according to market research firm NPD Group.

Last month, the National Retail Federation said it expected U.S. holiday sales to rise at their slowest pace in five years as shoppers wrestle with the anemic housing market and higher food and fuel costs.

But despite the cool holiday outlook, Toys "R" Us Chief Executive Gerald L. Storch said he expects shoppers will be largely undeterred by the recent recall news, or by what's going on in the U.S. economy.

"These toys that you see in the room today are fabulous. They're all safe and in the end it's going to come down to what's the coolest toy," Storch said.

"Mom is going to buy presents for her kids in good economies and bad economies," he said. "Toys always sell, especially hot toys."