Toy companies post mixed results

The popularity of Mattel's iconic Barbie doll has declined internationally

US toymakers have seen mixed results with Hasbro posting higher-than-expected third-quarter results while rival Mattel missed profits forecasts.

Hasbro saw a net profit of $138.2m (£80.6m), boosted by sales of its Star Wars toys, and Playskool toys.

But Barbie-maker Mattel saw a net profit of $238.1m for the third quarter, as overseas sales declined.

Both companies are now gearing up for the key Christmas period, which is expected to be tough.

The traditionally lucrative period will be a test of their strength as consumers cut spending and reduce non-essential purchases.

Consumers will be looking for bargains as the credit crunch, job losses and a housing slump bite into their finances.

Profits

Mattel, whose brands include Hot Wheels and Sesame Street's Elmo, saw net profits reach $238.1m, from $236.8m in the same period a year earlier.

While its sales rose by 6% to $1.95bn - buoyed by international sales of 7% - worldwide gross sales of its iconic brand Barbie fell 1% as overseas decline failed to counter domestic growth.

Mattel has had to deal with a raft of other problems such as increased product testing after last year's toy recall and a court battle with MGA Entertainment over rights to its Bratz dolls.

Meanwhile, Hasbro saw quarterly net profits of $138.2m, from $161.6m a year earlier.

The firm's sales were boosted by increased demand for its board games, with consumers seeking cheaper forms of entertainment as the economy slows.

US and Canadian sales increased by 6% to $1.3bn while sales jumped 9% internationally, or 4% excluding the impact of foreign exchange rates.