(Reuters) - Mattel Inc (MAT.O) reported a higher-than-expected quarterly profit on Tuesday as the world’s largest toy company benefited from raising prices and keeping a tight rein on costs.
The maker of Barbie dolls and Hot Wheels cars had increased prices at a mid-single-digit percentage rate on January 1 to offset higher costs for materials, labor and transportation.
Strong sales of its Fisher-Price and American Girl products also helped Mattel in the third quarter.
Net income rose to $365.9 million, or $1.04 per share, from $300.8 million, or 86 cents per share, a year earlier. Analysts on average had expected 99 cents per share, according to Thomson Reuters I/B/E/S.
Sales rose 4 percent to about $2.08 billion, while analysts expected $2.07 billion. Cost of sales, which includes the cost of the materials used in making the products and the direct labor costs involved, fell 8 percent to $962.4 million.
Sales rose 6 percent for the Fisher-Price brand and 16 percent for American Girl, but fell 4 percent for Barbie.
Mattel sells toys through retailers such as Wal-Mart Stores Inc (WMT.N), Toys R Us Inc TOY.UL and Target Corp (TGT.N) as well as through its own catalog and website. Smaller rival Hasbro Inc (HAS.O) is due to report its results next week.
Reporting By Dhanya Skariachan in New York and Siddharth Cavale in Bangalore; Editing by Sreejiraj Eluvangal and Lisa Von Ahn