Goodyear Tire & Rubber suffered a quarterly loss after charges for a plant closing and other unusual items, but r esults still exceeded expectations.
The world's largest producer of tyres posted a net loss of £25.19 million, in the third quarter, compared with net profits of £74.5 million a year earlier. Goodyear achieved record global sales during the period, which rose five per cent to £2.77 billion.
This came as a result of higher prices and sales of more expensive tyres, with the number sold dropping from 58.4 million to 55.8 million units in the quarter.
It also had to pay £66.1 million in after-tax restructuring charges, of which £56.2 million was related to the plan to close a factory in Tyler, Texas.
The results also reflect higher raw material costs of £130.7 million, offset partially by £118.1 million of improved price/mix, and lower tire volume.
Robert Keegan, chairman and chief executive, said: "Despite ongoing market weakness in North America and record high raw material costs, we continue to demonstrate the strength of our business model changes and successful product portfolio.
"After a challenging first half, our European Union business achieved year-over-year improvements in sales, units and segment operating income."
In the EU the company increased the number of tyres sold from 16.2 million to 16.5 million, while sales rose from £593 million to £663 million.
Mr Keegan said: "Our key business strategies are also continuing to drive excellent results in the Asia Pacific, Latin America and Eastern Europe, Middle East and Africa tire businesses.
"Although we are in the midst of a strike by the United Steelworkers in North America, we continue to work hard for a contract that is fair to all stakeholders and puts Goodyear on a level playing field with our competitors.
"In the meantime, we are executing on our contingency plans to continue providing our customers with outstanding value, products and services."