UPDATE 1-American Standard to consolidate ceramics making

(Adds details, changes dateline to Atlanta)

ATLANTA, July 13 (Reuters) - Heating and cooling systems maker American Standard Cos. Inc. ASD.N said on Friday it will consolidate ceramics-manufacturing operations in its Americas region, resulting in roughly $10 million in charges in the third and fourth quarters.

The company, which made the disclosure in a regulatory filing with the U.S. Securities and Exchange Commission, said it will discontinue the production of ceramics at its Queimados manufacturing facility in Brazil.

It will relocate manufacturing of the remaining products to more "cost-effective" locations, and expects the move to eventually save about $7 million in costs annually, it said.

The move is being taken to rebuild profitability in American Standard's bath and kitchen business, which the manufacturer is looking to sell as part of a plan to split up the company.

In June, American Standard said it would consolidate ceramic-making operations in Europe, with plans to shift production from a Spain plant to lower-cost areas. It said that move was expected to result in after-tax charges of about $11 million in the second and third quarters of 2007.

American Standard, based in Piscataway, New Jersey, said in February it would sell the bath and kitchen operation and spin off its vehicle-control unit. It plans to keep its air-conditioning business and change the company name to Trane, its flagship brand.

On Thursday, American Standard said the tax-free spinoff of the vehicle-control business was approved by its board. The new company, which provides electronic braking and transmission control systems for heavy-duty trucks, will be called WABCO, and its shares are expected to start trading on the New York Stock Exchange under the symbol "WBC" on Aug. 1.

In a research note on Thursday, SunTrust Robinson Humphrey analyst Keith Hughes cited potential for the independent WABCO and Trane businesses to be acquisition targets.

Hughes said in a research note that WABCO has been thought to be of interest to the automotive industry, while Trane could be a draw for other heating and cooling control companies.

"While hard to call specifically at this point, at least one of these businesses being bought is a significant possibility," Hughes wrote.

American Standard's shares were down 48 cents to $60.82 in early afternoon trading on the New York Stock Exchange. The stock has climbed 33 percent this year. (Reporting by Karen Jacobs, additional reporting by Nicole Maestri in New York)