Trane's 1st-quarter profit beats analyst estimates

PISCATAWAY, N.J.—Trane Inc., which makes heating, cooling and ventilation systems, said Tuesday its first-quarter earnings fell from a year-ago period which included income from its now-divested bath, kitchen and vehicle controls segments.

Adjusted profit topped Wall Street expectations, but Trane forecast second-quarter earnings below analyst estimates due to declining residential sales.

Net income for the three months ended March 31 fell to $65.9 million, or 33 cents per share, from $173.3 million, or 84 cents per share, a year ago. Excluding merger advisory costs of 2 cents per share, Trane earned 35 cents per share in the latest period.

On average, analysts polled by Thomson Financial expected earnings per share of 34 cents per share, excluding one-time items.

Revenue rose 6.5 percent to $1.71 billion from $1.61 billion, matching analysts' forecast.

Trane also said it expects its shareholders to vote this quarter on Ingersoll-Rand Co.'s proposed $10.1 billion acquisition takeover proposal.

For the second quarter, the company estimates profit from continuing operations of $145.2 million to $152.9 million, below than analyst expectations of $174.8 million.

Shares rose 3 cents to $46.17 in morning trading.

(This version CORRECTS reference in sixth paragraph to time of vote from "this month" to "this quarter.")