UPDATE 1-Goodyear cuts 2017 forecast amid higher raw material costs

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Oct 27 (Reuters) - Goodyear Tire & Rubber Co, the largest U.S. tire maker, lowered its full-year forecast for segment operating income for the third time this year, amid higher raw material costs and weaker demand.

Goodyear's shares were down about 3 percent at $32.67 in premarket trading on Friday.

Goodyear, which makes and sells tires under brands including Goodyear, Dunlop and Kelly, said it expected segment operating income - the combined earnings of its three business units - of about $1.5 billion in 2017, down from its previous forecast of $1.6 billion to $1.65 billion.

The company, which also makes tires for aircraft and mining equipment, said its tire unit volume fell 5 percent in the third quarter ended Sept. 30.

While original equipment unit volume fell 9 percent in the quarter, replacement tire shipments decreased 4 percent.

The Akron, Ohio-based company's main rivals include Japan's Bridgestone Corp and France's Michelin.

Sales in the Americas region, its biggest market, slipped 1.4 percent to $2.04 billion, partly impacted by the recent hurricanes while in Europe, the Middle East and Africa (EMEA) sales jumped 6.1 percent to $1.31 billion.

Net income fell to $129 million, or 50 cents per share, in the quarter ended Sept. 30, from $317 million, or $1.19 per share, a year earlier.

The company said it incurred about $12 million in hurricane-related costs in the quarter.

On an adjusted basis, Goodyear earned 70 cents a share, beating analysts' estimate of 67 cents, according to Thomson Reuters I/B/E/S.

Revenue rose 1.9 percent to $3.92 billion, in line with average analyst estimate.

Up to Thursday's close, shares of the company had risen 9.1 percent this year. (Reporting by Arunima Banerjee in Bengaluru; Editing by Savio D'Souza and Supriya Kurane)