Lego (Billund / Denmark; www.lego.com) reported a 166% jump in first half pre-tax profits, despite a stagnant international toy market. The toymaker said pre-tax profits reached DKK 564m (EUR 75.6m) from DKK 212m for the first six months of last year, thanks to improved sales and tight cost controls. Revenues grew 20% to DKK 3.56 bn, boosted by strong sales of classic product lines such as “Star Wars”, as well as the new licensed line “Indiana Jones”. The company said it achieved the improved results despite the negative impact of exchange rate fluctuations and rising oil prices.

While the international toy market did not grow in the first six months of the year, Lego said it achieved double digit sales growth to consumers in many markets and increased its share of all markets. Lego has raised its full year forecast for sales and pre-tax profits to approximately DKK 9 bn and DKK 1.5 bn respectively. However, Jorgen Vig Knudstorp, Lego’s CEO, noted that there is still a substantial element of doubt about the full year results because the bulk of toy sales are concentrated in the closing months of the year. In particular, the negative economic development appears to be gaining ground, he added.