Mattel Inc. ( ) , reported second-quarter profit that exceeded analysts’ estimates. The world’s biggest toymaker saw an 82% to $21.5 million, or $0.06 per share, jump in Q2 profits, despite a 19% to $898.2 million from $1.11 billion drop in revenues.

In the quarter, Mattel earned $0.03 a share on a year-over-year basis helped by cost cuts and lower inventory. Through the first two quarters a year ago, the company lost $34.9 million, or $0.10  a share, on revenues of $2.03 billion.

“In light of the challenging global economy, the quarter’s results met our expectations, with revenues negatively impacted largely by our lack of toys based on summer entertainment properties as well as foreign exchange rates,”  Robert A. Eckert, chairman and chief executive officer of Mattel, said in a statement.

The company’s debt-to-total-capital ratio was 32.7%. Year-to-date net cash flow used for operating activities came in at approximately $350 million, an improvement of $180 million, compared with a use of approximately $530 million in the first half of 2008.

Mattel continues to work on improving its supply chain by reducing capital spending on all but critical projects. Last year the company eliminated 1,000 jobs to cut costs.

Mattel gained $1.02, or 6.30%, to $17.21 rtq. at 2:39 E.T. in New York Stock Exchange composite trading.