AKRON, OH -- Even after posting an all-time quarterly sales record of $5.3 billion, Goodyear Tire & Rubber Co. watched profits fall into negative figures for the third quarter of 2006.

The company reported a net loss of $48 million, driven by charges related to its plan to close its Tyler, TX, tire plant, and continuing raw material cost increases.

Quarterly sales were up 6 percent compared to the same period last year, Goodyear said. Goodyear said all five of its business units – including North American Tire – posted quarterly records in sales.

Through the first nine months of 2006, Goodyear claims sales of $15.3 billion, up 3 percent from last year, while net income for the period totaled $28 million, down significantly from 2005’s net income of $279 million.

Goodyear’s North American Tire unit posted quarterly sales of $2.43 billion, up slightly from 2005’s $2.37 billion. Sales through three quarters of this year were $7.01 billion, up from 2005’s $6.8 billion. Unit sales for the first nine months were down some 7 million units vs. the same period last year.

Global tire unit sales for the quarter were 55.8 million tires, down from 58.4 million tires in the third quarter of 2005. The drop in unit sales was attributed to Goodyear’s exit from the private label tire business. Meanwhile, revenue per tire jumped 78 percent for the period.

“Despite ongoing market weakness in North America and record high raw material costs, we continue to demonstrate the strength of our business model changes and successful product portfolio,” said Chairman and CEO Robert Keegan. “After a challenging first half, our European Union business achieved year-over-year improvements in sales, units and segment operating income. Our key business strategies are also continuing to drive excellent results in the Asia Pacific, Latin America and Eastern Europe, Middle East and Africa tire businesses,” he said.