Net income, as reported, was $108.3 million, or $0.37 per diluted share, for the third quarter. This compares with a net loss of $177.6 million, or $0.61 per diluted share, in the prior year.
Normalized earnings of $0.47 per diluted share compares with prior year normalized results of $0.45 per diluted share. The improvement was driven by lower interest and other expense and fewer shares outstanding.
For the third quarter 2012, normalized diluted earnings per share exclude $0.06 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; income tax charges of $0.03 per diluted share attributable to certain tax contingencies, expiration of various statutes of limitation and the resolution of tax examinations; $0.01 per diluted share related to the extinguishment of debt; and a net gain of $0.01 per diluted share from discontinued operations primarily due to the receipt of funds previously in escrow related to the hand torch and solder business divestiture. For the third quarter 2011, normalized diluted earnings per share excluded $1.05 per diluted share for impairment charges primarily related to goodwill write-downs; $0.06 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan; $0.01 per diluted share related to the incremental costs associated with the company’s CEO transition; and benefits of $0.10 per diluted share resulting from the reversal of certain tax contingencies due to the expiration of various statutes of limitation. In addition, last year the company excluded from normalized income a net loss from discontinued operations of $11.2 million, or $0.04 per share, reflecting the income from discontinued operations and loss on disposal of its hand torch and solder business. (A reconciliation of the “as reported” results to “normalized” results is included below.)
The company generated operating cash flow of $301.5 million during the third quarter of 2012, compared with $295.3 million in the comparable period last year. Capital expenditures were $45.2 million in the third quarter compared with $55.1 million in the prior year.