By Nick Zieminski

NEW YORK (Reuters) - Ingersoll-Rand Co (IR.N: Quote, Profile, Research), which is in the process of buying heating and air conditioning company Trane Inc TT.N, reported a higher-than-expected quarterly profit on Wednesday, driven by international demand and higher parts, service and rental sales.

Ingersoll shares were up 5 percent in late trading.

A lower-than-expected tax rate was a key factor in the diversified manufacturer's earnings beat, Bear Stearns analyst Ann Duignan said.

Ingersoll is looking to close its $9 billion acquisition of Trane by the end of next month. The deal will almost double its annual revenues and expand its exposure to fast-growing international markets for heating and cooling equipment.

"There were concerns that Ingersoll would have to lower its outlook based on Trane's outlook yesterday," Duignan wrote in a research note. "(The) market may be relieved that this is not the case, however, lower tax rate is the driver."

Trane cut its full-year sales forecast when it reported results on Tuesday. (For more on Trane's earnings, click on [nN29293610])

Ingersoll's net earnings slipped to $181.6 million, or 66 cents per share, from $217.5 million, or 70 cents per share, a year earlier.

Excluding costs related to discontinued operations, Ingersoll earned 77 cents per share, which was 4 cents ahead of forecasts, according to Reuters Estimates.