Inside Logistics

Toy maker suffers supply chain woes on China tariffs

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

November 7, 2019
by The Canadian Press (CPSTF)

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.