Mega Brands has announced its third quarter results. The company reported net earnings of $72 million, or $1.22 diluted earnings per share, compared to a net loss of $122.1 million, or $3.34 diluted loss per share, in the same quarter of 2008. Net sales in the quarter decreased to $118 million compared to $160.9 million in the third quarter of 2008.
Net sales of toys declined to $86.2 million compared to $107.9 million in the same quarter of 2008. The company attributes the decrease to lower shipments in the boys 5-plus and magnetic construction categories. Net sales of stationery and activities declined to $31.7 million compared to $53 million in the comparable quarter of 2008.
Earlier this week, Mega Brands announced a settlement in a lawsuit with Lawrence, Jeffrey, and Sidney Rosen, former owners of Rose Art. The settlement resulted in a gain of $72 million or $1.22 diluted earnings per share.