Ingersoll-Rand ( IR) may be breaking a sweat these days, but the market is pretending not to notice the stains.

The diversified manufacturer, which makes air conditioners among other things, saw profit more than halved in the second quarter. The company attributed the decline to a drop in sales volume, unfavorable product mix and a negative foreign-exchange impact.

Still, despite all that, Ingersoll raised the lower end of its full-year revenue outlook and narrowed its earnings projection -- which, in what is becoming a recent trend, sent shares up more than 12% in early morning trading, to $27.11.

During the quarter, the company earned $122.1 million, or 38 cents, compared with $256.1 million, or 88 cents, in the year-ago period. Excluding restructuring costs, the company earned 50 cents per share. Analysts expected earnings of 39 cents.

Sales rose 13% to $3.47 billion from $3.08 billion. International sales fell at a faster pace than U.S. sales.

Its largest segment, air conditioning systems and services, saw profit margins drop to 5.9% from 9.5% last year.

Last year, the company bought Trane for about $9.5 billion, and since then has been working to pay down its debt. Ingersoll has already cut its debt by $241 million to about $4.7 billion since the beginning of the year.

Looking ahead, the company expects full-year earnings in the range of $1.50 to $1.80 a share, from a prior outlook of $1.40 to $1.90 a share. Ingersoll narrowed its sales forecast to a range of $13.3 billion to $13.7 billion.
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