The Ohio Art Company - Introduction

Introduction

Post Office Box 111
Bryan, Ohio 43506-0111
U.S.A.
Telephone: (419) 636-3141
Fax: (419) 636-7614
Web site: http://www.world-of-toys.com

Public Company
Incorporated: 1930
Employees: 191
Sales: $38.99 million (2003)
Stock Exchanges: American
Ticker Symbol: OAR
NAIC: 339932 Game, Toy, and Children's Vehicle Manufacturing; 332116 Metal Stamping; 336399 All Other Motor Vehicle Parts Manufacturing

Headquartered in a small northwest Ohio town, The Ohio Art Company is best known for its classic drawing toy, the Etch A Sketch. In stark contrast to the faddish toys that crowded the toy market during the late 20th and early 21st centuries—as well as the increasing prevalence of toys featuring a licensed identity—the company's flagship product has endured more than 40 years, sold over 100 million units, and appealed to children in dozens of countries worldwide. About 25 percent of the firm's revenues are derived from the sale of writing and drawing toys. One of the oldest toymakers in the United States, Ohio Art produces about 50 toys in all, including the popular Betty Spaghetty line of dolls as well as water toys, children's drum sets, and sports sets. The company's slogan, "Making Creativity Fun," emphasizes its focus on art- and craft-oriented toys. Although toys generate the majority of Ohio Art's annual sales, the production and sale of custom metal lithography and molded plastic products, such as automobile trim, serving trays, and metal food containers, contribute more than one-third of revenues. After posting net losses in four out of five fiscal years from 1996 to 2000 thanks to a series of travails—and at times verging on bankruptcy—Ohio Art bounced back to profitability during fiscal 2002. The company remained vulnerable, however, because of its heavy reliance on two main toy lines, Etch A Sketch and Betty Spaghetty.