AKRON, Ohio -- Goodyear Tire & Rubber Co. has reported higher tire unit volumes, record sales and higher earnings for the first quarter of 2011.

"I'm very pleased with our outstanding first quarter results; they're an excellent first step on our path to our 2013 targets," said Richard Kramer, chairman and CEO. "Improvement in North American Tire is a critical element to achieving our targets. North American Tire's first quarter performance strengthens my confidence in our future. All of our businesses made great progress in offsetting higher raw material costs through improved price/mix and in driving sales of new, innovative products."

Goodyear's first quarter 2011 sales were $5.4 billion, up 27 percent from the 2010 quarter and the highest ever achieved by the company in any quarter. Tire unit volumes totaled 46.8 million, up almost 7 percent from 2010.

First quarter sales reflect a $219 million increase in volume. Sales also benefited from strong price/mix improvements, which drove revenue per tire up 15 percent over the 2010 quarter, excluding the impact of foreign currency translation.

"Our outstanding revenue-per-tire performance reflects a continued focus on developing and selling innovative products in targeted market segments," Kramer said.

First quarter sales were also impacted by a $276 million increase in sales in other tire-related businesses, primarily third-party chemical sales in North America, and favorable foreign currency translation of $125 million.

The company had segment operating income of $327 million in the first quarter of 2011, up $87 million from the year-ago quarter. Segment operating income reflected higher volume as well as improved price/mix of $361 million, which nearly offset $385 million in higher raw material costs ($352 million net of raw material cost reduction actions).

Goodyear's first quarter 2011 net income was $103 million (42 cents per share), compared with a net loss of $47 million (19 cents per share) in the 2010 quarter. All per share amounts are diluted.

The 2011 first quarter included total charges of $18 million (7 cents per share) due to rationalizations and accelerated depreciation and $6 million (2 cents per share) related to discrete tax charges. All amounts are after taxes and minority interest.

Outlook
Goodyear expects the global tire industry to continue to grow in 2011 and has increased its forecast for most major segments in North America and Europe. The company now expects that its unit volumes will increase at the higher end of the previously announced range of 3 percent to 5 percent. In addition, the company anticipates its raw material costs for the remainder of 2011 will increase 25 percent to 30 percent compared with the prior year.