Strong sales of toys based on characters from films such as Transformers and the latest instalment of Indiana Jones have helped Hasbro to a higher-than-expected quarterly profit.

America's second-largest toy company said that second-quarter profits had risen to $37.5 million (£18.8 million) from $4.8million a year earlier and sales had risen 13 per cent to $784.3 million. The owner of brands such as GI Joe and Playskool said that sales outside North America had risen by 15 per cent to $293.7 million, helped by the weak dollar.

Hasbro said that it intended to raise prices by mid-single digits from September 1, however, to reflect rising manufacturing and transport costs and to protect margins. Its shares were down 19 cents, about 4 per cent, to $37.80 in midday trading.

Toy companies such as Hasbro and Mattel, America's largest toymaker, look to the holiday months for the lion's share of their annual sales, but there are fears that demand will be dampened by rising fuel and food prices. David Hargreaves, Hasbro's chief operating officer, said: “While input cost inflation continues to be challenging, thus far we have been able to mitigate most of the impact through cost savings and pricing actions.”

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