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Latest Business News

American Standard's Breakup Applauded

Friday, February 02, 2007 5:01:26 AM
By JEFFREY GOLD

NEWARK, N.J. (AP) - American Standard Cos. Inc. said Thursday it will sell its well-known plumbing fixture business and spin off a unit that makes auto braking systems, then rename the company Trane after its signature brand of air conditioning systems.

Wall Street applauded the breakup, sending the stock rising more than 7 percent to its highest level since the company went public in 1995.

While American Standard, based in Piscataway, N.J., is best known for its kitchen and bath products, the Trane operation brought in $6.8 billion, or 60 percent of its sales in 2006.


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