July 20, 2007 - American Standard's Bath & Kitchen Business Reports Increased Sales, Income Loss For 2Q
American Standard's bath and kitchen business reported second-quarter 2007 sales of $660.5 million, up 6.4 percent from the same quarter a year ago. Income, however, represented a loss of $11.5 million, down from income of $2.5 million for the same period last year. The company stated the loss was a result of operational consolidation and separation expenses.
The bath and kitchen business is now classified as a discontinued operation; the company announced earlier this year that it would sell the B&K segment.
"We continue to be very encouraged by Bath & Kitchen's performance, despite challenging consumer market conditions in some key areas, particularly the U.S.," said Fred Poses, chairman and CEO. "We announced our separation plans on Feb. 1, and we're very pleased with the progress so far. The Bath and Kitchen sales process is moving ahead nicely, and we're confident of a successful outcome."
As part of its initiatives to rebuild the segment's profitability, the company is closing ceramics manufacturing operations in Excelsior, United Kingdom, eliminating about 140 jobs and save the company $10 million in 2008.
WABCO, the company's vehicle control systems business, will spin off on July 31, ahead of the projected fall date.
The air-conditioning business saw an 9.6 percent jump over second-quarter 2006 figures, and income was up 3.8 percent. Pricing and commercial volume helped to offset higher commodity costs and lower residential sales.