Mattel Inc 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 Jan. 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, Toys R Us Inc and Target Corp as well as through its own catalog and website. Smaller rival Hasbro Inc is due to report its results next week.