UPDATE 1-Mega Brands post wider quarterly loss

*Shr loss $0.36 vs $0.10

*Sales drop 34.1 pct to $70.1 mln

*Hopes for sales pick up led by Battle Strikers (Adds details. In U.S. dollars)

TORONTO, Aug 13 (Reuters) - Mega Brands Inc MB.TO posted a wider second-quarter loss on Thursday hurt by lower sales across both its divisions, but sees a new line of toys called "Battle Strikers" boosting results later in the year.

The Montreal-based toy and stationery products maker said it posted a loss $13.3 million, or 36 cents a share for the quarter, compared with a loss of $3.6 million, or 10 cents a share, a year earlier.

Sales declined 34.1 percent to $70.1 million from $106.4 million, with sales from its toys line dropping to $32.1 million from $50.4 million and sales of stationery and activities lines declining to $38 million from $56 million.

The company, which is still recovering from a 2006 recall of its Magnetix toys, hopes for a turnaround in toy sales later this year on the back of the release of its new Battle Strikers spinning tops.

These toys, which hit the stores this month, have been tapped by industry experts as one of the sure hits for the lucrative Christmas gift buying season. ($1=$1.08 Canadian) (Reporting by Scott Anderson; Editing by Derek Caney)