Good morning, my name is Tony, and I'll be your conference operator today. At this time, I'd like to welcome everyone to The Goodyear Tire & Rubber Company Third Quarter Earnings Conference Call. [Operator Instructions] I would now like to hand the program over to Christina Zamarro, Goodyear's Vice President, Investor Relations.

Thank you, Tony, and thank you, all, for joining us for Goodyear's third quarter 2014 earnings call. Joining me today are Rich Kramer, Chairman and Chief Executive Officer and Laura Thompson, Executive Vice President and Chief Financial Officer. Before we get started, there are a few items we need to cover. To begin, the supporting slide presentation for today's call can be found on our website at investor.goodyear.com, and a replay of this call will be available later today. Replay instructions were included in our earnings release issued earlier this morning. If I could now draw your attention to the Safe Harbor statements on slide two. I would like to remind participants on today's call that our presentation includes some forward-looking statements about Goodyear's future performance; actual results could differ materially from those suggested by our comments today. The most significant factors that could affect future results are outlined in Goodyear's filings with the SEC and in our earnings release. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Our financial results are presented on a GAAP basis and in some cases, a non-GAAP basis. The non-GAAP financial measures discussed on the call are reconciled to the U.S. GAAP equivalent as part of the appendix to the slide presentation. And with that, I'll turn the call over to Rich.

Thank you and good morning, everyone. Before we begin, I'd like to take a moment to welcome Christina Zamarro as our new Vice President of Investor Relations. Christina is a long time member of Goodyear’s Global Treasury team and I know she has already met with a number of you. She’s a great addition to our team, so welcome Christina. Now, today I’ll discuss our strong third quarter results. I’ll also address the North America volume questions that are likely on your mind and provide a brief look ahead to 2015. Laura will follow with the review of our other businesses as well as the financials. By now you’ve read the highlights of our press release. Record third quarter segment operating income of $520 million and segment operating margin of more than 11% the best in more than a decade, segment operating margins of greater than 10% in all four of our businesses, an all time record quarter for North America with earnings up 30% year-over-year. Europe, Middle East and Africa back on track with a 57% improvement in segment operating income and another strong EPS quarter. These results are the outcome of taking actions that are consistent with our strategy and putting our best efforts into how we build the value of our brands and products for the long term. You’ve seen it now for four years. In addition, I believe that delivering record results for such an extended period of timed validates our strategy especially in an environment of headwinds created by persistent global economic volatility and political unrest. Now in that environment I am pleased with our financial performance, but I’m even more gratified by how we achieve those results. For us, the how is sticking to our strategy. We are running our business better every quarter…

Thank you, Rich, and good morning, everyone. My remarks this morning will start with a review of the third quarter financial results. As Rich’s comments focused largely on North America, I will go into more depth on our operating result of our other businesses. I'll then finish with some initial view on 2015. We'll then open the call up for your questions. Let's turn to Slide 10 and review a few key items on the income statement. We are very pleased with our strong third quarter earnings performance. Segment operating income for the quarter increased to a record $520 million, a 21% increase over last year bringing the year to-date growth to 17%. Unit volume in the quarter decreased 2%, replacement volumes were down 1% primarily driven by North America as Rich just explained. Original equipment volumes were down 3%, primarily driven by Brazil, where the recessionary economy continues to negatively affect OEM production. For the quarter net sales were down $345 million. Third quarter sales decreased by $137 million because of foreign currency translation and $72 million from lower volumes, additional price mix reduced sales by $95 million primarily because of the effect of lower raw material cost on pricing including normal raw material indexed agreements. Our gross margin was 24.5%, an improvement of 340 basis points versus the prior year. This reflects the value of our brands and products in the marketplace and our focus on cost reductions that are being led by our operational excellence initiative. In the quarter, we achieved a record $520 million in segment operating income and 11.2% in SOI margin. Each of our four business units posted margins exceeding 10%. This is the first time and at least 15 years that we have achieved these margins. Our third quarter operating tax rate as…

Thank you. (Operator Instructions) We’ll take our first question from Itay Michaeli with Citigroup. Please go ahead. Your line is open.

Good morning, Itay. Itay Michaeli – Citigroup: Good morning and congratulations everyone.

Thanks. Itay Michaeli – Citigroup: I was hoping -- thanks for the preliminary 2015 outlook. I was hoping if you could talk a little bit more about the confidence level on the price mix versus raw material improvement there, I think Laura you mentioned kind of flattish raw material assumption. What the split between kind of pricing mix and maybe also you can update us on the OTR business as well?

So, Itay, just from a broad view on how we think about price mix next year and how we think – I think maybe I go back and look how were you looking at the global economy. And I think it’s safe to say that there’s a lot of headwinds as we look into 2015 given what’s happening in Europe both the economy in the euro and the like. But that said, we feel confident in the new products that we have coming out into the marketplace, and we continue to do that region by region, Laura touch on a few of the products that are award winning in China. We’ve essentially refurbish our entire product line in Latin America. We have new products coming out again in North America next year on top of the products we have in Europe. So in terms of a portfolio driving the value, the brand and being compensated for that in the marketplace we continue to feel very good about heading into 2015. And from a raw material perspective, clearly we’ve seen a decrease in raw materials. This year we anticipate that we’re not going to see big spikes going into next year. So I think you’ll see some of that tailwind as well as we go. So, we remained pretty positive about how we think that we can bring price mix to the bottom line next year again.

Yes. No doubt. And then, in addition to that as we think about OTR next year, we’re certainly not expecting any kind of a recovery, but for to kind of remain the same. So we will no longer have a negative impact on price mix versus raw kind year-over-year as we go out to next year. And even though the raw materials are really as we said, kind of the same or flat, we still have somewhat of a tailwind in the first part of the year from the raw material. And then, again, mix driven by all the good products and the core consumer and commercial business results. Itay Michaeli – Citigroup : That’s very helpful. Thank you. And then just a question on cost savings. It looks like you seem to accelerate the pace this year is off – of already impressive pace a year ago and probably into next year as well, just talk a little bit more about where you’re seeing these incremental opportunities and particularly where you add -- how much you realize on the European productivity stock planning you previously laid out?

So, Itay, I’ll start and Laura can talk to the specifics on Europe as well. But we feel pretty good about it and I’m going to address it in the context of on umbrella of our operational excellence initiatives. And there is two types of cost savings that we go after. Certainly the ones that we need to and we’ll continue to focus on which is just better cost management by the company, quarter after quarter, year after year, and then there is what we might call efficiency of productivity which really goes into the operational excellence initiatives we have, which spans both getting more efficient in our factories in terms of making more of the right tires at a lower cost by driving efficient programs across our global footprint. And we’re seeing the benefits of that both in things like a better cost, lower maintenance cost for our factories by having better up time, by putting programs in around the world that are delivering results. We’re seeing it an increased output in certain of our factories in the HVA tires that we want. Frankly I’m very impressed with some of the benefits that we’ve gotten and greater output of the tires that market wants particularly in Europe. And we see that happening today. Our programs today are only in a number of plans around the world. We see that expanding to all of them, so there’s a lot more of that efficiency in cost to get out of our factories. And we also have significant programs around our raw material cost or general purchases if you like, things that we call our supplier collaboration programs where we work with them to try to create programs that are beneficial to us and to them and to continue to get those cost savings to the bottom line and that’s been very effective for us this year. So, I mentioned in my script. I refer to operational excellence. I think on one of the early calls when I took this job as an area that we were going to drive and we’re going to see benefits down the road, patient execution to get the results, that what you’re seeing and we expect to see more of that going out into 2015 and beyond.

Right. And Itay on the – I think we talked about $75 million to $100 million in a three-year plan for cost savings within EMEA and that was to end the third year would be in 2015. We’ve not really split out or given a specific number related to the $75 to $100 million. We just show it as part of the net cost savings for total company. But certainly as Rich mentioned our stronger than expected cost savings did primarily come from Europe and is very much in line with achieving that $75 million to $100 million by the end of 2015. Itay Michaeli – Citigroup: And then just maybe one quick one if I could sneak it in on pension expense just a point of clarification, any impacts at all from mortality table like anything or can you able to give a slight deck for the third year outlook 2015? That’s all I have.

Right, we take a look at the mortality table, really, I think last time we did, we look at – we do each year, I’m sorry, we look at the mortality tables each year, but last time we made a change based on U.S. life expectancy was in 2012. As we go we’ll give any update we can to our liability for this. But certainly as you know it wouldn’t impact cash in the near term and would have small impact on expense as we see it going forward.

Itay, I’m happy to talk about the impact of mortality tables rather than discount rates. It’s a positive.

That’s a better conversion. Itay Michaeli – Citigroup: That’s different one, absolutely, yes. Okay. That’s all I had. Thanks so much.

Thank you.

Thank you.

Thank you. Next we’ll move to David Tamberrino with Goldman Sachs. Please go ahead. Your line is open.

Yes. Hi. Thank you.

Good morning, David.

Hello, David.

Good morning. Congratulations on the quarter. Just kind of following in line of questioning on cost savings, I mean, the double-digit operating margins across the four regions was rather impressive especially in light not hitting double-digits in Europe since I think 2005 one of the quarters there. Could you kind of speak to the sustainability of those in North America as well as Europe kind of going forward?

David, again, I’m going to put it into the bucket of the programs we have and our operational excellence initiatives. And I would tell you the programs we feel very confident will continue to deliver the savings and the efficiencies that we need to drive the business going forward both in terms of cost reduction and in terms of incremental production of the right tires that we need as we head into the 2015 and beyond. I will tell you the absolute amount of savings we’ll continue to clarify that particularly as we look into 2015, Laura can comment on that. But I will tell you that we see a tremendous amount of opportunity for incremental savings across all those buckets within our operational excellence initiative.

That’s right. And you know something David that’s been on our strategy roadmap for several years, so it is a program we just started last quarter. It is one o those things to get it to be sustainable, you’ve got to create the right foundation for it and sometimes starts off flow as you build that foundation. But I think that laying that strong foundation, having the plans going forward, rolling it out in a methodical approach around the world, it really will gives us that confident in long term sustainability especially through conversion cost savings.

Okay. Just looking kind of sequentially from 2Q to 3Q it seems as if a lot of it really came to fruition in the last quarter, so very interesting?

You know, David, and I’m sorry, let me clarify for you. So we did have a $120 million through the third quarter. We expect for the full year $130 to $150 and as we note in the comments to that chart on page 19, there are some investments in our marketing and our R&D new product portfolio that do happen in the fourth quarter that somewhat offset it. So the pace of the cost savings remains strong, but as we note this is also where we offset some of our incremental investments in our products going forward.

Understood, that helps clarified. Perhaps a next question there is a competitor in Europe that reported a week or so ago that sounded from them it looks like they were going continue to chase volume in the region by lowering price, I mean, how much of that have you contemplated in your forecast for 2015 and has that really affected pricing within the market?

David, I would tell, we certainly can’t comment on what the competitions doing, but I would say a disciplined strategy and how we’re going to approach the market. If we look at our results in the quarter and year-to-date and if we look at revenue per tire taking out exchange and things like this, you would see and Christina can walk you through the details if you like later on. Our revenue per tire is essentially flat when you adjust for exchange. So we’ve been disciplined in how we’re approaching the market. And I talk a lot in my remarks about what we’re doing in North America and what was a very unique market to say the least but those type of comments and the strategy direction that we’re taking hold for Europe as well and that’s what team, Darren and the team are doing in Europe right now. And we would see that continuing into 2015. David, I will say as we always have from time-to-time we do need to adjust prices. We have raw material indexes that relate to our OEMs and certain fleets and we’ll adjust for those prices as we see fit. And we’ve seen raw material come down and you’ve seen some of that as well as we’ve gone to do it. But certainly we expect to stay on our strategy as I’ve described it.

All right. And then maybe just lastly before I jump, about $150 million in share repurchases outlined for the fourth quarter how much of that has been done to-date if any?

Zero.

Okay. Understood. Thank you.

Thanks David.

Thank you. Next we’ll move to Rod Lache with Deutsche Bank. Please go ahead. Your line is open.

Good morning, Rod.

Hi, Rod.

Good morning, a couple of things. Just first on the price mix versus raw materials. It was better in the quarter than you had been expecting during at least based in your commentary on the Q2 conference call. Could you just talk a little about the components of that $112 million, how should we be thinking about the pricing part and the mix part, what’s changed?

Okay. So no doubt and just to be specific with, I think you’re referring to is on the second quarter call we talked about price mix net of raws, we expect it to be about the same or about $44 million negative in the third quarter, and it actually came in $14 million negative in the third quarter. And really that’s primarily due to what I would say stronger price mix especially mix than was in our forecast particularly in both North America and in Europe and when you listen to the volume story, you can hear that we especially in North America sold a lot less in the low end which caused a nice favorable mix for us in North America, so that’s really the primary difference. And it is $30 million, it is different but on a very large revenue base somewhat small and hard to get it exactly precise on a forecast.

Okay and then on slide 19, you suggested that price mix versus raw materials would become neutral in the fourth quarter, and then presumably positive again then as you look out to next year, earlier you were thinking that there would be a positive comparison in the fourth quarter because the mix comps in OTR would be easier versus the fourth quarter of last year. So what’s moving around there that would make that less favorable if this quarter was more favorable?

Yes, and it really is just timing Rod as we think about the two different quarters in the regions, we saw a little better than expected this quarter in the third quarter and kind of feel like the fourth quarter be a little worst. It is true that OTR kind of annualizes itself in the fourth quarter, so no big change there. But again, to your point it is slightly different, but it’s really just driven by timing.

Okay and also kind of along the same lines, your guidance for cost savings versus inflation if I remember correctly was that it would be a slight drag and it came out significantly better. How should we be – is that also kind of a timing issue what we saw this quarter?

Yes, I mean I think so. Right, we have had full year at the second quarter cost savings of about $50 million and that increased as we went through the third quarter, but it’s really essentially about the same for the full year.

Okay. Just lastly, obviously I wouldn’t expect you guys to be commenting on [LBO] and those kinds of things but it just – it does underscore kind of the cash flow generative power of the business and it certainly is positive that you are looking to allocate more capital for share repurchases to sort of put your money where your mouth is on the evaluation. How should we be thinking about that kind of on a going forward basis? Are you sort of suggesting that on a go-forward basis you’re going to exercise more just pressure and flexibility vis-à-vis share repurchases to take advantage of valuation because up until now the primary message was just getting to investment grade?

Right. Really in essence there is no change to how we feel about the entire balance capital allocation plan including returning value to our shareholders. This is just like many of you based on the current stock price we don’t think it reflects the confidence we have in our results, in our strategy going forward. So we’re going to take this opportunity to buy up to $150 million in the fourth quarter.

Okay, but nothing prospective beyond this in terms of how you are thinking about capital allocation?

No, Ron, we put – I’ll jump in there.

Yes, sure…

We’ve put a obviously a lot of time and effort into putting together and articulating the capital allocation plan and again we see it very balanced in terms of being shareholder friendly if you like in terms of dividends and share repurchases. We see it as what we view is the right thing to do to invest in our business to get more of those HVA tires which we need more, and focused on our leverage metrics as well. So no change in how we look at that point.

That’s right. And it is based on our three year plan that started in 2014 and we’re three quarters into a three year plan, so no change.

Right. Okay, thank you.

Thanks Ron.

Thank you. Next we’ll move to Ryan Brinkman with JPMorgan. Please go ahead, your line is open.

Hi, congrats on the quarter. Thanks for taking the questions. Just regarding the positive preliminary outlook for price mix raw [mets] spread in 2015 a couple of more questions on it. First it seems like from one of your earlier answers that you are assuming the latest commodity prices straight line, is that the case whether then estimated in the future trend I ask because I think there’s some expectation that some better [indiscernible] rubber prices could now fall due to the decline in oil prices. And then second, does the outlook assume any pricing benefit from U.S. tariffs and Chinese tires or would that be additive?

So just and Laura can jump in as well. So the thing to remember on how we look at raw materials very hard to determine where raw material prices are going. Our view has been over the long term that raw material prices would continue to increase, we haven’t obviously we haven’t seen that, we seen it actually go the other way right now. As we look to the 2015, what Laura mentioned earlier is remember we have a lag in terms of and it can be as much as six months, when we buy raw materials to when it actually comes through cost , the sales in terms of the tire being sold. So, by virtue of that we’re going to see a tailwind going into 2015 just as the math works to get that, and that’s something that will happen as we go. And we don’t make, we don’t have use on really where raw material prices will end up. I’ll point out that one of the corollaries that we had frankly years ago they got a little bit disjointed when oil prices got so high as if we saw a corollary between oil prices and natural rubber. That maybe something that gives us a better indication of how natural rubber will move over the near term. But we don’t really, we’re not setting a mark in what the natural rubber will be in 2015. And relative to the tariffs obviously we don’t have a view on what will happen, that’s a decision by Department of Commerce in the ITC and that’s for them to make and then we’ll deal with it.

Okay. And then regarding the oil price decline, at least that is already taking place, presumably that will result in a fall off in gasoline prices, how do you think about that impacting miles driven and replacement shipments as they head into ’15?

Actually I think it ideally will be a bit of a tailwind for us. I think the last numbers would take us average through June, I believe it’s about up about 1.4% but of course that’s before we’ve seen the more precipitous drop in fuel prices right now. So, I think in general what we’re seeing and it’s actually a good thing. I think it’s positive for us, positive for the industry is that miles driven are trending back in the right direction and it’s positive because there was a time I remember being in an investor meeting a number of years ago, Rod probably would remember. And we had a long discussion about where mobility was for consumers, because with gas prices high there was a view that people were going to stop driving or driving a lot less. And then we hit the recession where we saw that happen again. And now we’re what multiple years out of the recession and we actually see that miles driven are trending back to where they were previous session levels after being flat for a long period of time. So I think it supports the fact that citizens in the U.S., drivers in the U.S. value their mobility and for us that’s a good thing over the long term and certainly lower gas prices help that as well.

Okay. Thanks and just last question on some of the cost drivers. For savings overall, do you think you are in a position again where you sustainability drive cost savings and excessive general inflation and then on the so-called other line, I see in the footnote there’s a $23 million benefit from lower incentive comp. Is that kind of like stock indexed compensation tailwind that might not continue if your shares hopefully are rebound?

Yes, it does it includes that. That’s right. And then back to the net cost savings for our 2015 yes, exactly we expect to just similar to our track record in the past to have our cost savings net of inflation be a positive number in 2015.

All right. That’s helpful. Congrats again. Thanks.

Okay. Thank you.

Thank you. We’ll take our final question from Emmanuel Rosner with CLSA. Please go ahead, your line is open.

Hi, good morning and thanks for squeezing me in. Yes first question and a point of clarification on the 2015 pricing expectations. If I want to focus only on the pricing and not on the raw materials, I understand that raw materials could be a tail wind at the beginning of the year because of the lag, but just on the pricing, do you expect an improvement in pricing conditions in 2015 versus the trend that we’ve seen in 2014? And in particularly related to that you were speaking about stock piles of Chinese tires because of a prebuy, do you think that in addition to an impact on shipment this could have also an impact on the industry pricing?

On the first point obviously we don’t comment on pricing. I would tell you our view has always been that we feel the value of our products is what we look to be compensated for in the market. So value of our products, the brand, the distribution, the service, the quality of the products is all what we try to get compensated for in the market and that’s what will continue to drive in 2015, again supported by new products supported by the programs we have out in the market place to do that and we feel very confident about that going into 2015. And the impacts of the stock piles of inventory I guess is a situation that’s going to play out and will be impacted by the decision of the DOC in the Department of Commerce and the ITC and whatever those decisions are, are what we’ll have to deal with. And I think what I would refer you to is to look back at what happened at the tariffs when the 421 tariffs were put in place, certainly there were other environmental things going on around there as well like increasing raw material prices, but that’s one way to potentially think about what could happen. If they were to go in place, but again, the question of whether they will or not is one we don’t have a view on it, it’s a decision by the ITC and the Department of Commerce.

Okay, and then on Europe. I mean obviously very impressive margin performance in the challenging environment in general. Do you view these sort of margins as sustainable obviously you had some significant cost savings but the challenges in the region seem to be not to be abating, do you think these margins are sustainable in the long run?

We certainly do over the long run. And I would say we do feel very good about the results in Europe in the quarter and year-to-date. We’re doing what we said we would do. We’ve got the right portfolio. We’ve got a great winter tire product, we are dealing with our cost over there and we are really probably most importantly re-establishing our value proposition with our distributors and dealers out there and being more competitive in the market place and doing so versus where we were in the past. And you are seeing that in our results. Emmanuel, I have to just build on your point, clearly what we’re seeing in Germany in terms of the economic conditions there certainly in the euro zone itself and with the weaker euro and with consumer demand being obviously challenged a bit more recently consumer confidence, excuse me – the headwinds clearly are in Europe and that’s something we are going to have to deal with both with again winning in our targeted market segments but also focusing on cost in that environment. I’d add one other thing for you to think about in Europe particularly as we look ahead and that’s a comment Laura mentioned that a large part of the tire market in Europe is the winter market. And right now, as Laura said, we’ve planned for a green winter as we look at it but I’d also say that right now it’s pretty warm in Northern Europe, so it’s not snowing over there yet and while we’ve had a great sell-in to the market with our products the question as it always is it’s going to be what happens on sell-out. So we certainly like it to snow a little more over there to help that process move forward. But that will be something we need to deal within the quarter as well.

Very helpful. And then just one real final point of clarification. A follow up to Ryan’s question on the benefit from lower incentive compensation, can you maybe give us some of the drivers of – what drove this, this benefit, is it really mostly the stock price decline during the quarter, because it was obviously a large benefit, so how should we think about it as we model on the future, years and quarters?

It’s really driven by the stock price, right. They reverted last year’s change in the stock prices.

Nothing more complicated than that.

Right, very simple.

Okay. Thank you very much.

Thank you.

Okay, thank you Emmanuel and thanks everyone for participating today. We appreciate your interest and attention. Thank you.

Thanks.