AKRON, OHIO -- Goodyear Tire & Rubber reported record first quarter sales of $4.9 billion, reflecting a 2 percent increase compared to the 2005 period.

Sales increased due to higher pricing and a more-favorable product mix, largely in the company's North American Tire business. The impact of currency translation reduced sales by approximately $74 million. The year-ago quarter included approximately $79 million in sales from businesses divested during 2005.

Goodyear reported net income of $74 million (37 cents per share), a 9 percent increase compared to $68 million (35 cents per share) in the first quarter of 2005. All per share amounts are diluted.

"Sales increases were driven by strong revenue per tire growth of 7 percent as we focus our efforts on the high performance, profitable segments of the tire market," said Robert Keegan, chairman and chief executive officer. "The execution of our key strategies is delivering solid results despite a more difficult environment and a tough year-ago comparison."

The 2006 quarter benefited from after-tax items including favorable settlements with certain raw material suppliers of $32 million (15 cents per share), a pension plan change in Latin America of $13 million (6 cents per share), and income of $10 million (5 cents per share) from a Latin American legal settlement. Negatively impacting the quarter was an after-tax charge of $30 million (15 cents per share) for restructuring.

In addition, Goodyear recognized total after-tax expenses of $6 million (3 cents per share) for stock options and grants of other stock based incentive awards during the first quarter.

The prior-year quarter included net income of $9 million (4 cents per share) from businesses divested during 2005.

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