AKRON, OHIO -- Goodyear Tire & Rubber Co. continued posting positive results in its first quarter of 2005, earning $68 million in profit against record first quarter sales of $4.8 billion.

Goodyear’s long-struggling North American Tire unit also finished the quarter on the upside, with a 7.9 percent unit sales increase in the replacement market. North America Tire showed sales of $2.14 billion, up from 2004’s $1.94 billion, and profits of $11 million, up from a $24 million loss last year.

On an overall basis, quarterly sales were up 11 percent, while the $68 million in profit was up considerably from a 2004 first quarter loss of $78 million.

"By continuing to focus our resources on driving improvements in targeted markets, we see the benefits in both increasing competitiveness and earnings," said Robert Keegan, chairman and CEO. "Our first quarter earnings improvement was driven by the European Union, North American, Latin American and Asia/Pacific tire businesses, and our growth took place in a difficult environment of rapidly rising raw material costs."

Goodyear did state that “while the company anticipates that its operating performance for the balance of the year will exceed its performance in the comparable period of 2004, the rate of gain is expected to be less than in the first quarter.”

Also of note, Goodyear consolidated its once separate chemical division into its North American Tire group as of Jan. 1.

Sales for the North American Tire unit increased 10 percent compared to the first quarter of 2004, thanks to higher volumes and “favorable pricing and product mix.” Consumer replacement unit sales were up 7.9 percent, while commercial OE and replacement sales volumes jumped 14.9 percent, Goodyear said.

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