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shares slid 4% early Monday after the company reported a drop in third-quarter profits caused in part by a widespread recall of its toys.

The El Segundo, Calif., maker of Barbies, Matchbox cars and Fisher-Price toys posted third-quarter earnings of $236.8 million, or 61 cents a share. That was down from $239 million, or 62 cents a share, in the year-ago period.

The results included about $40 million in charges tied to the company's product recalls. Over the past two months, Mattel has recalled millions of toys manufactured in China after they were found to have excessive levels of lead paint.

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Analysts surveyed by Thomson Financial expected earnings of 70 cents a share. The Thomson estimates typically exclude one-time charges.

Mattel's sales rose to $1.84 billion from $1.79 billion, but missed Wall Street's target of $1.91 billion.

On a regional basis, third-quarter gross sales fell 2% in the U.S. and increased 10% in international markets, including the effect of favorable currency-exchange rates. Mattel said it continued to see softness in its Barbie line in the U.S., though it said a "good portion" of the decline was tied to supply-chain disruptions.

Mattel has been battling with weakness in sales of Barbie, one of its flagship products, amid waning demand and increased competition from dolls such as Bratz. Worldwide Barbie sales were down 4% in the quarter.

Mattel said it did see strength from several lines, particularly its Fisher-Price and Disney/Pixar Cars products.

Shares of Mattel were down 85 cents to $21.60 in morning trading.