Shares of

American Standard

( ASD) rose 8% Thursday after the company said it plans to separate its three businesses.

The maker of air conditioners and plumbing products also posted in-line fourth-quarter earnings and projected 2007 earnings above Wall Street's estimate.

American Standard's restructuring plan calls for the company to retain its air conditioning systems business while spinning off its global vehicle control systems business. The company also plans to sell its bath and kitchen business.

"The board has concluded that separating American Standard into three focused, better-understood companies will create greater shareholder value than the current structure," the company said. "The businesses have size, global reach, industry leadership and organizational talent to succeed as separate companies."

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Upon completion of the plan, American Standard will change its name to Trane, the company's flagship air conditioning brand. The vehicle controls business will be known as Wabco.

As for the company's earnings, American Standard posted a profit of $114.3 million, or 56 cents a share. Excluding certain items, the company earned 51 cents a share, matching Thomson Financial's analysts' consensus estimate.

American Standard posted revenue of $2.70 billion, compared with Wall Street's forecast of $2.74 billion.

During the year-earlier period, the company earned $64.4 million, or 30 cents a share, on revenue of $2.55 billion.

For 2007, American Standard forecast earnings of $3.15 to $3.25 a share, above analysts' target of $3.09. The company predicts revenue growth of 8%, or roughly $12.1 billion. Analysts project revenue of about $11.8 billion.

Shares of American Standard were trading up $3.71 to $53.10.