This October the company has announced record third quarter sales, operating margin and earnings. At the time, chairman and CEO Frederic M. Poses had commented, "Looking ahead, we're on track to achieve our annual 15% earnings growth target as well as our sales, margin and cash flow goals."

Now he comments in the latest announcement, "These changes will eliminate job duplications and bring our operations closer to customers, enhancing our efficiency and competitive position across all business lines." He added that he believed the $52 million annual savings would be on an "ongoing basis."

American Standard was created from the 1929 merger of the American Radiator Co. and the Standard Sanitary Manufacturing Co. It acquired Westinghouse Air Brake Co. in 1968 and The Trane Co., a manufacturer of HVAC equipment, in 1984. After Black & Decker Co. attempted a hostile takeover in 1988, management led a buyout, making the company privately held. It resumed its publicly traded status in 1995.