* Posts $406.5 mln Q2 loss on charges
* Q2 non-GAAP loss $0.03/shr in line with est
* Cuts full-year non-GAAP profit view to $1.01/shr
* Shares down 6 pct (Recasts, adds details, updates share movement)
July 28 (Reuters) - Toymaker Jakks Pacific Inc JAKK.O posted a quarterly loss of $406.5 million on charges, lowered its full-year profit outlook weighed down by lower sales expectations, and said it will cut jobs to control costs, sending its shares down 6 percent.
Given the lower-than-expected sales forecasts across a number of products and lower gross margins, Jakks was evaluating its business operations and will institute a restructuring plan to streamline operations, reduce costs and lower capital expenditures, co-Chief Executive Stephen Berman said.
Berman said the cost-cutting efforts will include headcount reductions and consolidation of office spaces.
“We are anticipating sales of core Jakks products to be lower than expected for this year due to continued softness at retail, coupled with underperforming lines in the current portfolio, such as Hannah Montana, WWE, Pokemon and Cabbage Patch Kids,” Chief Executive Jack Friedman said in a statement.
The Malibu, California based company expects a profit of $1.01, before items, in 2009. In April, the company had forecast full-year earnings of $1.70 to $2.00 a share.
For the second quarter, the maker of Care Bears toys posted a net loss of $406.5 million, or $14.96 a share, compared with a profit of $4.2 million, or 15 cents a share, last year. The company incurred a pretax non-cash goodwill-impairment charge of $407.1 million in the quarter.
Excluding charges, the company posted a loss of 3 cents a share, in line with analysts’ expectations.
Net sales for the quarter were $145.4 million on a non-GAAP basis.
Shares of the company, whose rivals include Mattel Inc MAT.N and RC2 Corp RCRC.O, were down at $11.04 after the bell. They closed at $11.70 Tuesday on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Jarshad Kakkrakandy, Vinu Pilakkott)
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