Toyco RC2 Corp has taken a good sock to the bottom line after a tumultuous quarter marred by a large product recall. Income from continuing operations for the Oak Brook, Illinois-based company dropped to US$2.4 million from US$8 million in the same quarter last year. And for the six months that ended June 30, 2007, earnings went from US$15.6 million to US$10.4 million this year.

Net sales didn’t plummet nearly as much, and were down 14% to US$82.2 million. Decreases in preschool, young children and adult product sales were partially offset by a jump in the infant and toddler category.

Sales in the preschool category dropped by 27%, which RC2 attributes primarily to slower movement of its Bob the Builder and Thomas & Friends toy lines and ride-on vehicles. Of course, the preschool category also suffered a major blow from the Thomas & Friends product recall issued in June that cost the company an estimated US$3.3 million.

On the bright side, sales of infant and toddler products were up approximately 4%, driven by the Soothie bottle feeding system, American Red Cross health and wellness products marketed under The First Years brand, and newly relaunched Lamaze infant development products.