Jan. 15--RC2 Corp. shares are under pressure this morning, after the Oak Brook toy maker warned that fourth-quarter sales, and earnings, will fall short of expectation as a result of "unprecedented declines in holiday spending" and other negative factors.

The company said it expects adjusted sales of $121 million, rather than the $126.6 million Wall Street experts had been looking for. And per-share earnings, excluding special items, will be between 35 cents and 40 cents, RC2 said -- a disappointment for analysts who have been expecting 46 cents a share.

RC2 noted that its latest quarter will be socked by an accounting "impairment" charge of up to $265 million, to write down the value of goodwill and other intangibles on its books. The quarter will also include about $2 million in costs associated with a workforce reduction during the December quarter.

The fourth-quarter results reflect the impact of lower consumer spending during the holiday season, as well as "the global economic slowdown and the negative impact from foreigtn currency exchange rates," said Chief Executive Officer Curt Stoelting.

In late-morning Nasdaq trading, RC2 shares were down 68 cents, or 9.6 percent, at $6.41. As recently as September, the stock was changing hands above $25.

jpmiller@tribune.com

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