AKRON, OHIO -- Goodyear Tire & Rubber Co. today reported second quarter sales of $5.1 billion, a record for any quarter and an increase of 3 percent compared to the 2005 period. Excluding the impact of businesses divested in 2005, sales increased 5 percent compared to the prior-year quarter.

The sales growth reflects improved pricing and product mix driven by demand for the company's branded tires in the consumer replacement markets, and the favorable impact of currency translation. Revenue per tire increased 7 percent compared to the second quarter of 2005.

Four of the company's six businesses achieved higher segment operating income compared to the second quarter of 2005, with three setting records. Total segment operating income was $267 million, compared to $316 million in the 2005 period. Divestitures in 2005 reduced second quarter 2006 segment operating income by $14 million.

Second quarter net income was $2 million (1 cent per share), which included $63 million (36 cents per share) in after-tax rationalization and accelerated depreciation costs primarily related to plant closings. Second quarter 2005 net income was $69 million (34 cents per share). All per share amounts are diluted. See the table at the end of this release for a list of significant items that impacted the second quarters of 2006 and 2005.

The 2006 quarter was also impacted by higher raw material costs of $210 million, an increase of 16 percent compared to the 2005 quarter, and weak tire industry demand, particularly in North America.

Tire unit volume in the second quarter of 2006 was 54 million units, compared to 56.4 million units in the 2005 period, reflecting primarily weakness in the North American consumer replacement market.

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