Toymakers Expect Normal Growth in 2001 after Bad 2000 Campaign 
Nancy Dillon 
 
02/09/2001 
KRTBN Knight-Ridder Tribune Business News: Daily News - New York City 

Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source:
World Reporter (TM) 
 
Toymakers, emerging from a year of negative sales growth and no
obvious blockbusters, are counting on Harry Potter, dinosaurs and a
new generation of robotic pets to attract more babes -- and their
parents' pocketbooks -- to toyland.
"We saw a 1.4 percent decrease [in sales] last year. But my feeling is
we'll see a more normal 6 percent growth rate in 2001," said Patrick
Feely, chairman of the Toy Manufacturers of America.
 
Key to Feely's projections will be the box office performances of
"Harry Potter And The Philosopher's Stone," scheduled to open in
November, and "Jurassic Park III," slotted for release July 18.
"Sure we're making the assumption that the [economy's] landing will be
fairly soft. But on top of that, things are much stronger on the
product licensing front," Feely said.

At the annual American International Toy Fair, which opened yesterday
at Javits Center, Hasbro already is showing a bevy of licensed
"Jurassic Park III" products, including a three-foot-long robotic
dinosaur called Raptor.

And Danish toy giant LEGO is working on a line of Harry Potter
software games and construction sets -- though the items aren't on
display at Toy Fair due to confidentiality agreements.

"We anticipate the products will do extremely well since Harry Potter
has proven appeal to kids of all ages -- both boys and girls," said
LEGO spokesman Michael McNally.

Margaret Whitfield, a toy analyst at Tucker Anthony Sutro, said she,
too, believes the industry will bounce back in 2001. But she warned
that retailers may take a more cautious approach to licensed products
than Feely expects, opting instead for perennial favorites such as
board games, Barbie and pre-school merchandise.

"Not since the 'Lion King' have movies really lived up to their
expectations in terms of toy sales," she said.

The threat of a looming recession didn't faze Whitfield either. "In an
economic downturn, instead of taking the family to Disney World, you
hunker down at home. But you always have something under the Christmas
tree," she said.

According to the figures released yesterday by the Toy Manufacturers
of America, toy sales dropped from $16.6 billion in 1999 to $16.4
billion in 2000.

The downturn was further echoed in Hasbro's fourth-quarter report,
which showed a loss of $58.4 million, the company's first in almost a
decade.

The nation's No. 2 toymaker also announced plans to axe 100 more jobs
thanks to flagging interest in the Pokemon and "Star Wars" toys that
performed so well in 1999.

"While 2000 was a very painful year, we are looking forward to
returning Hasbro to profitability in 2001 and beyond," said Hasbro CEO
Alan Hassenfeld in a statement