Commenting on the outlook, Nosbusch added, “Given first quarter results and our current assessment of market conditions, we are reaffirming our outlook for fiscal 2013. We expect sales to be in the range of $6.35 to $6.65 billion, with corresponding Adjusted EPS of $5.35 to $5.75. Stabilization of macroeconomic indicators and forecasts, coupled with our rebuilt backlog, reinforce our expectations of stronger growth in the second half of the year compared to the first half. We will continue to monitor business conditions closely and pace our investments accordingly."
Following is a discussion of first quarter results for both segments.
Architecture & SoftwareArchitecture & Software fiscal 2013 first quarter sales were $657.5 million, an increase of 1 percent from $650.5 million last year. Organic sales increased 2 percent and currency translation reduced sales by 1 percentage point. Segment operating earnings were $183.2 million in the first quarter of fiscal 2013 compared to $189.2 million in 2012. Segment operating margin was 27.9 percent in the first quarter of fiscal 2013 compared to 29.1 percent a year ago. Control Products & Solutions Control Products & Solutions fiscal 2013 first quarter sales were $831.7 million, an increase of 1 percent from $823.4 million last year. Acquisitions and currency translation had a minimal impact. Segment operating earnings were $92.8 million in the first quarter of fiscal 2013 compared to $102.7 million in 2012. Segment operating margin was 11.2 percent in the first quarter of fiscal 2013 compared to 12.5 percent a year ago. Other Information Free cash flow was $156.3 million in the first quarter of fiscal 2013. Fiscal 2013 first quarter general corporate net expense decreased to $18.5 million from $20.2 million in 2012. The Adjusted Effective Tax Rate for the first quarter of fiscal 2013 was 26.6 percent compared to 24.9 percent a year ago. The Company now expects the full-year Adjusted Effective Tax Rate for fiscal 2013 to be in the range of 25 to 26 percent, which includes the impact of the extension of the research and development credit for years 2012 and 2013 under the American Taxpayer Relief Act of 2012.