Barbie is once again proving popular with children

The US toymaker reported a better-than-expected net income of $239m (�128m), up 6.1% on the same time last year.

The Barbie doll maker has introduced new lines to counter strong competition from MGA Entertainment's Bratz doll.

The tenth anniversary edition of its Sesame Street doll, called TMX Elmo, has also helped boost sales.

"We had good performance across our portfolio," said Robert Eckert, the company's chairman and chief executive.

The new Elmo doll, which laughs and slaps its knees when tickled, was launched in September and has proved very popular with children since.

Barbie sales in the US rose for the third consecutive quarter, while toys based on the animated film Cars have also been strong.