Gaining from the cost reductions and cheaper raw materials, Goodyear Tire and Rubber Company managed to earn twice the profits earlier expected. The earnings are far better than the company expected in the third quarter of 2009. The profits earned in the three months rose to $72 million, as compared to $31 million, a year ago.

Goodyear is the largest U.S. tire maker that earned a profit of 5 per cent more than what the analysts had expected.

Though, an Ohio-based company The Akron sacked 5,500 workers in the first half, which is 500 more than the target planned by the company for the full year.

The largest unit of Goodyear is in North American business, which reportedly did a profit business of $2 million profit in the above said quarter as compared to $19 million loss last year. Sales fell by 15 percent to $1.9 billion.

The company received a boost from falling oil prices which reduced the cost of synthetic rubber and other tire building products such as carbon black.

Goodyear plans to trim another $215 million in expenses under a new four-year union contract reached with the United Steelworkers late last month.