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American Standard (ASD) met third-quarter targets but trimmed its full-year guidance, citing a slower-than-expected rebound in its revamped bath and kitchen business.

The Piscataway, N.J., manufacturer made $151 million, or 74 cents a share, for the quarter ended Sept. 30, compared with the year-ago $159 million, or 74 cents a share. Sales rose to $2.96 billion from $2.64 billion a year earlier, beating the $2.84 billion Wall Street target.

Excluding restructuring costs, earnings rose 12% from a year ago to 82 cents a share, matching the Thomson Financial analyst consensus estimate.

"We had a good quarter, even though we didn't make the progress we expected in Bath and Kitchen," said Fred Poses, chairman and CEO. "Air Conditioning Systems and Services, our largest business, continued to achieve strong results with record third-quarter sales, margins, commercial orders and backlog. Vehicle Control Systems once again outperformed its major markets and delivered strong results. During the quarter, the entire company experienced higher commodity costs and continued to invest in new products and marketing for long-term growth.

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"For the year, we expect sales growth of about 10%, but we're lowering our earnings estimate for the year," said Poses. "We expect GAAP net income per diluted share of $2.53-$2.58, which represents a 2-4% increase over last year including 2005 stock option expensing. On an adjusted basis, we expect full-year net income per diluted share of $2.65-$2.70, an increase of 7-9%, including stock option expensing and excluding operational consolidation expenses and benefits from tax items and an asset sale.

"We lowered the adjusted range because of the slower-than-expected progress in Bath and Kitchen, and, taking a conservative approach, we lowered the GAAP range because of uncertainty about divestitures and benefits from tax items as well as possible continued restructuring of Bath and Kitchen." The company previously provided a range of $2.70-$2.80 for its full-year GAAP and adjusted net income per diluted share.