Quebec-based toy manufacturer MEGA Brands (TSX: T.MB, Stock Forum) recorded a decline in net sales in the fourth quarter of the year, as results for Q4 and the year were released Monday.

Results for the fourth quarter included a decline in net sales of 21.6% to $101 million compared to $128.8 million in the same period in 2007. Net loss was $323.3 million or $8.83 per diluted share, compared to a net loss of $66.2 million or $1.81 per share in the fourth quarter of the prior year, impacted by impairment of goodwill and intangible assets and other charges of $234.4 million which reduced earnings by $6.40 per share.

For 2008, the company reported sales of $447.7 million, down 14.6% compared to $524.5 million in 2007. Net loss was $458.7 million or $12.53 per diluted share, compared to a net loss of $97.1 million or $2.82 per share in the previous year.

"Consumer products companies were affected by the dramatic decline in the global economy during the fourth quarter of last year and MEGA Brands was no exception," said Mac Bertrand, the company’s president and CEO. "We experienced lower than expected sales and took additional charges resulting from the extremely weak retail environment, including restructuring charges and write-offs of bad debt."

"For 2009, we are planning for an even more challenging retail environment than last year," added Bertrand. "One of our first priorities this year is to preserve cash and increase liquidity. We are continuing to take additional measures under our Value Enhancement Plan to reduce costs and working capital requirements while benefiting from a decline in resin prices and a lower Canadian dollar."

On the company’s Bullboard, woundedknee said: “Pretty brutal financial statements. Guess it all had to be looked after and hopefully they've got all the bad news out of the way[sic].”