By Kiah Haslett
| The infant and youth product and toymaker RC2 Corp. reported an 88.9 percent increase in first-quarter profits over a year ago, citing popular products, lower input costs and favorable currency exchange rates.

The Oak Brook-based company’s net income was $3.4 million, or 15 cents a share, compared to last year’s $1.8 million or 10 cents a share. Net sales overall increased 2.1 percent to $88.1 million.

International sales of youth and preschool products increased 25 percent, and the
price of raw material decreased in the second half of 2009, which helped
this quarter’s results. Initial sales of newly launched “Chuggington”
die-cast trains and “Thomas & Friends” Early Engineers toy were
strong, and product sales are expected to decline in the second quarter.
Although infant and toddler products net sales decreased 2.7 percent in
the first quarter, the company expects them to gain strength and
perform well.

“First quarter sales reflected improved overall consumer spending, yet
remained tempered by conservative retailer ordering, especially in the
U.S.,” said Curt Stoelting, CEO of RC2. “However, we are encouraged by
what appears to be improved consumer spending trends.”