Mattel Inc. said Friday its second-quarter profit fell by nearly half as higher costs offset strong sales of toys related to summer movies like "Kung Fu Panda" and the latest Batman film and the benefit from the weaker dollar.

The results still beat Wall Street's expectations. That, combined with Mattel's legal victory in a case against the maker of Bratz dolls, sent the shares soaring nearly 12 percent. The company also said it may raise prices again this spring.

Mattel, which makes Barbie, Hot Wheels and Fisher-Price toys, said quarterly profit dropped 48 percent to $11.8 million, or 3 cents per share, from $22.8 million, or 6 cents per share, a year ago.

Revenue rose 11 percent to $1.11 billion, including a 15 percent rise in international sales that came mainly from the benefit of a weaker dollar. U.S. sales grew just 3 percent.

Analysts surveyed by Thomson Financial had expected profit of 2 cents per share on revenue of $1.04 billion.

"Although the second quarter, like the first, is relatively small for us, we are pleased to generate some positive top-line momentum and see clean retail inventory levels as we enter the second half," Mattel Chairman and Chief Executive Robert A. Eckert said in a conference call with investors.

Barbie was one weak spot, as global sales fell 6 percent. Entertainment properties fared better, with strong sales of toys related summer movies "Batman: The Dark Knight," "Speed Racer" and "Kung Fu Panda." Products tied to "Kit Kittridge: An American Girl" also performed well, ahead of its opening this month.

Higher costs continued to hamper results, however. Selling, general and administrative expenses increased 16 percent to $347.9 million. About $25 million of the increase came from higher litigation fees related to its copyright infringement lawsuit against MGA Entertainment Inc., which makes Bratz, and product recalls. Commodity and gas prices also kept climbing.

A federal jury in California decided Thursday that Carter Bryant, the designer of MGA's Bratz characters, conceived the idea for the dolls while working for Mattel. The verdict could mean millions of dollars for the Barbie maker when the jury considers possible damages in a separate proceeding, which is scheduled to start next week.

"Mattel has pursued this case as a matter of principle and we are satisfied that the justice system has helped with the wrongdoing that has occurred," Eckert said.

MGA Chief Executive Isaac Larian said he believes the company will "ultimately be successful" during the second phase of the trial.

"This is because it is undisputed that MGA _ not Carter Bryant _ independently created the Bratz dolls," he said in a statement. Continued...