Its shares fell more than 2 percent in morning trading.

The El Segundo, Calif.-based company said net income for the quarter ended Sept. 30 slipped to $236.8 million, or 61 cents per share, from $239 million, or 62 cents per share, in the year-ago period. Latest-quarter results included charges of about $40 million related to the company's product recalls covering merchandise that contained lead magnets or bore lead paint.

Sales rose 3 percent to $1.84 billion from $1.79 billion a year ago, mainly helped by the weaker dollar.

Analysts surveyed by Thomson Financial had expected profit of 70 cents per share on revenue of $1.91 billion.

Its shares fell 48 cents, or 2.1 percent, to $21.97 in morning trading Monday.

Since August, Mattel has announced three separate recalls of some 21 million toys because of dangers to children from lead paint or from tiny magnets that can be harmful if swallowed.

The majority of the toys were recalled because they featured the small magnets.

Last month, the company apologized to the Chinese government, acknowledging that the problem was a design flaw and not the fault of Chinese manufacturers.

"Despite the challenges the company faced during the third quarter, the business has performed fairly well, even with some supply chain disruptions that impacted our sales during the quarter," said Robert A. Eckert, chairman and chief executive. "U.S. Barbie performance was soft and remains an area of focus, although a good portion of the decline in the quarter was directly related to the supply chain disruptions."

Eckert said international sales have continued to drive growth, while the U.S. was down slightly in the quarter. Mattel did say, however, that it saw continued strong performance from its core Fisher-Price and Disney/Pixar "Cars" properties.

The "Cars" line of toys and the addition of Radica games and puzzles helped drive a 29 percent increase in sales in the toy maker's Entertainment toys business unit.

Global Barbie sales fell 4 percent, with increases in international sales partially offsetting declines in domestic sales of the fashion doll.

In all, sales for Mattel's Girls and Boys Brands business unit were $1.14 billion, up 6 percent from the year-ago quarter, the company said.

Worldwide sales for the Other Girls Brands unit tumbled 10 percent from the year-ago quarter, with a drop in sales of toys from the Polly Pocket! brand driving the decline.

The company's Wheels unit posted a 9 percent increase in global sales during the quarter, driven by sales of its Hot Wheels and Matchbox brands.