AKRON, Ohio -- The Goodyear Tire & Rubber Co. has reported that its third quarter 2011 sales and earnings were the best in its history. Quarterly net sales exceeded $6 billion for the first time ever.

"I am very pleased with our performance," said Richard Kramer, chairman and CEO. "Our third quarter results are another step on the path toward our 2013 targets and especially meaningful given the challenging market conditions in much of the world.

"All four of our tire businesses set all-time quarterly sales records as our teams did an excellent job offsetting higher raw material costs with improved price/mix and selling new, innovative products in targeted market segments," Kramer said. "While our third quarter results are evidence of the fundamental improvements we have made to our business, we continue to see many opportunities to build on this success by driving efficient, standardized processes throughout our business."

Goodyear's third quarter 2011 sales were $6.1 billion, up 22 percent from a year ago and the highest ever achieved by the company in any quarter. Tire unit volumes totaled 47.7 million, unchanged from 2010.

The company said third quarter sales reflect strong price/mix performance, which drove revenue per tire up 18 percent over the 2010 quarter, excluding the impact of foreign currency translation. Sales were also impacted by a $221 million increase in sales in other tire-related businesses, primarily chemical sales in North America, and favorable foreign currency translation of $175 million.

The company achieved segment operating income of $463 million in the third quarter, a record for any quarter. This was up $229 million from the year-ago period. Segment operating income for the third quarter of 2011 reflected improved price/mix of$739 million, which more than offset $554 million in higher raw material costs ($506 million net of raw material cost reduction actions).

Goodyear's third quarter 2011 net income available to common shareholders was $161 million (60 cents per share). This is the highest quarterly net income from Goodyear's continuing operations in its history. The company recorded a net loss of $20 million (8 cents per share) in the 2010 third quarter. All per share amounts are diluted.

The 2011 third quarter included total charges of $35 million (13 cents per share) due to rationalizations, asset write-offs and accelerated depreciation, and $4 million (1 cent per share) related to discrete tax charges; and a gain of $5 million (2 cents per share) on asset sales. All amounts are after taxes and minority interest.

Year-to-Date Results

Goodyear's sales for the first nine months of 2011 were $17.1 billion, up 24 percent from $13.8 billion in the 2010 period. Sales reflect strong price/mix performance and the $129 million impact of a 1 percent improvement in tire unit volume, as well as a $718 million increase in sales in other tire-related businesses, primarily third-party chemical sales by North American Tire. Favorable currency translation increased sales by $648 million. The sale of the Latin American farm tire business negatively impacted sales by $48 million.

The company's year-to-date segment operating income of $1.2 billion was up 69 percent from $693 million last year. Compared to the prior year, year-to-date segment operating income reflects higher sales in all four of the company's business units and actions that reduced costs by $253 million.

Compared to the first nine months of 2010, 2011 segment operating income also benefitted from $1.7 billion in improved price/mix, which more than offset $1.2 billion in higher raw material costs. Raw material costs reflect $128 million in actions taken to reduce their impact.

Goodyear's year-to-date net income available to common shareholders of $303 million ($1.19 per share) compares to a net loss of $39 million (16 cents per share) in 2010's first nine months. All per share amounts are diluted.

Outlook

Goodyear expects the global tire industry will continue to grow in 2011, although at the low end of ranges previously forecasted in all segments except commercial original equipment. In recognition of third quarter volume levels and the outlook for the fourth quarter, the company now expects that its full-year tire unit growth will approximate its year-to-date growth rate through the first nine months.

"Despite the slower growth environment in many countries, we have effectively managed our business and taken actions to capitalize on opportunities to profitably grow our sales," Kramer said. "We are confident that Goodyear is on track to achieve record-setting performance in both sales and segment operating income for the full year."

Goodyear anticipates its raw material costs for the fourth quarter of 2011 will increase more than 30 percent compared with the prior year, bringing the total increase for the full year to 30 percent over 2010.