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VALUE LINE SEES F-P REBOUND

THE FIRST QUARTER was lousy. The second quarter is likely to be difficult. But the Value Line Investment Survey still thinks Fisher-Price Inc. will earn record profits this year and next.

Even though the East Aurora toy maker lost money in the first quarter and probably will report sharply lower profits in the second quarter because of increased costs and high operating leverage, Value Line says the firm's new products and strengthening European sales will give profits a boost in the second half.

Analyst Philip M. Seligman thinks Fisher-Price's second-quarter earnings will slip to 20 cents a share from 28 cents a share a year earlier, but he still expects its profits for the whole year to rise to $1.50 a share from $1.30 per share last year.

Fisher-Price is launching 60 new items and restaging 25 other products this year and Seligman says its European sales should benefit since the company's new strategy calls for introducing new products on both sides of the Atlantic at the same time.

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