Lego faces Christmas production block
Last Updated: Tuesday, October 31, 2006 | 11:48 AM ET
The Associated Press
Children hoping to get Lego toys for Christmas may be in for a disappointment.
The Danish toymaker is having a hard time keeping up with demand for its popular plastic building blocks as toy stores stack their inventories for the Christmas season, a company official said Tuesday.
"Many of our most popular products are sold out," Lego spokeswoman Charlotte Simonsen said. "As part of efforts to restructure the company and focus on our core business, we had to make some cuts and the company has not had time to readjust its production."
Simonsen declined to say how many orders had been turned down, but said the restructuring changes had affected the production of Duplo bricks and boxes with Lego City, Star Wars and Lego Technik sets.
The Billund, Denmark-based group has been trimming its staff at home and abroad since starting a restructuring program four years ago. Part of its production and distribution has been moved to countries with lower wages than Denmark, including the Czech Republic and Mexico.
The firm is a major rival of Canada's Mega Brands Inc. of Montreal, which also makes plastic building blocks.
In 2005, Lego sold its four Legoland amusement parks in Denmark, Britain, California and Germany to the U.S.-based private-equity group Blackstone Capital Partners.
Boersen, Denmark's leading financial newspaper, estimated that Lego could lose 750 million kroner ($127 million) because of lost Christmas sales.
The group posted a net profit of 505 million kroner ($86 million) in 2005, compared with a net loss of 1.93 billion kroner in 2004, on strong sales led by its Bionicle line of snap-together creatures.
Share Tools
Top News Headlines
- Oklahoma tornado death count not firm, governor says
- The number of deaths caused by the Oklahoma tornado may yet rise, Gov. Mary Fallin indicates, saying there have been 237 injuries reported in the aftermath of the storm 16 kilometres south of Oklahoma City. more »
- Children driven around too much, Canadian report suggests
- Fewer Canadian kids are commuting by walking or biking as a new report reveals a marked decline among young people using active modes of transportation. more »
- Keith Boag: Have you heard about the murderous abortion doctor?
- The gruesome trial and murder conviction of Philadelphia abortion provider Dr. Kermit Gosnell is unlikely to change American abortion law, Keith Boag writes. But it has U.S. journalists questioning their priorities and how they cover such a sensitive issue. more »
- 'Very upset' Harper wants fast Senate spending reform
- Prime Minister Stephen Harper told the Conservative caucus this morning that he's "upset" about the recent conduct of some senators and his own office, and he wants Senate spending rules tightened quickly. more »
Must Watch
Latest Business Headlines
- Carney's parting advice: play to Canada's strengths
- Outgoing Bank of Canada governor said Canada's economy is poised for growth as long as all stakeholders keep pulling in the same direction. more »
- Home Depot profit up 18% as renovation rebounds
- Home Depot Inc.'s first-quarter net income rose 18 per cent, thanks to the ongoing housing recovery, despite a chilly and wet spring. more »
- Apple CEO Tim Cook grilled on Irish tax scandal
- The world's most valuable company, Apple Inc., employs a group of affiliate companies located in Ireland to avoid paying billions of dollars in U.S. income taxes, a Senate investigation has found — and its CEO will be questioned Tuesday. more »
- Deal to protect boreal forest caribou fails
- Three years of efforts to find a way to protect threatened woodland caribou in Canada's boreal forest while still allowing forestry companies to log there have ended in failure as negotiations broke down over how much land to set aside for conservation. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12764.17 | 151.12 |
| DOW | 15400.77 | 65.49 |
| NASDAQ | 3507.59 | 11.16 |
| SP 500 | 1671.36 | 5.07 |
| TSX-VENTURE | 937.76 | 3.08 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Oklahoma tornado death count not firm, governor says
- 'Very upset' Harper wants fast Senate spending reform
- Microsoft's Xbox revamp: Is the sun setting on game consoles?
- Edmonton driver, 62, charged in boy's patio death
- Dellen Millard farm still under police watch
- Schoolchildren describe Oklahoma tornado terror
- Keith Boag: Have you heard about the murderous abortion doctor?
- Microsoft unveils Xbox One
- Unknown remains found on Dellen Millard's farm

