NEW YORK (Reuters) - Diversified Bermuda-incorporated manufacturer Ingersoll-Rand reported better-than-expected quarterly net profit last Friday on international results and demand for such industrial products as air compressors, sending its shares up 2.2 percent in early trading.

Ingersoll, which is in the process of focusing on security, refrigeration and industrial technologies, said each of the three divisions posted higher quarterly revenue.

However, only one — industrial technologies — had higher operating margins, reflecting demand for air compressors and strong pricing. Ingersoll cited restructuring costs and unfavorable product mix for lower margins in the other two divisions.

"Climate control is fighting through economic and material cost problems," said analyst Eli Lustgarten of Longbow Securities, who has a 'neutral' rating on the stock. "(In) security and safety, they did a terrific job, given there is a lot of exposure to housing and construction markets."

The company, which also raised its full-year forecast, said net earnings rose nine percent to $266.6 million, or 92 cents per share, including 24 cents from discontinued operations, compared with $243.8 million, or 76 cents per share, a year earlier.

Excluding restructuring costs, earnings were six cents ahead of analysts' average forecast of 90 cents a share, Reuters Estimates said.

A stock buyback reduced the number of shares outstanding to about 289 million from about 320 million from a year earlier.

Revenue rose 10 percent to $2.24 billion, ahead of Wall Street forecasts for sales of $2.2 billion.

Ingersoll, incorporated in Bermuda but with administrative headquarters in New Jersey, said it expects full-year profit from continuing operations of $2.66 to $2.69 a share, or total 2007 earnings of $3.55 to $3.60 per share, excluding restructuring costs and gains from asset sales.