"Through nine months, organic sales are up 1 percent year over year and segment operating margin has expanded 30 basis points. Our entire organization has done a great job driving productivity in what continues to be a low growth environment.”
Commenting on the outlook, Nosbusch added, “We expect market conditions to remain stable through the fourth quarter. We now project our fiscal full-year sales to be about $6.3 billion. This represents full-year organic growth of approximately 1 percent. Based on this revised sales outlook and our year-to-date earnings performance, we are narrowing our Adjusted EPS guidance, while maintaining the high end of the previous range. The new Adjusted EPS guidance range is $5.50 to $5.70.
“In this low growth environment, we will remain flexible and continue to balance investing in innovation and customer-facing resources with delivering strong shareowner returns.”
Following is a discussion of third quarter results for both segments.
Architecture & Software
Architecture & Software fiscal 2013 third quarter sales were $671.0 million, an increase of 1 percent from $663.8 million last year. Segment operating earnings were $188.6 million in the third quarter of fiscal 2013 compared to $185.2 million in 2012. Segment operating margin increased to 28.1 percent from 27.9 percent a year ago.
Control Products & Solutions
Control Products & Solutions fiscal 2013 third quarter sales were $953.2 million, an increase of 6 percent from $896.6 million last year. Segment operating earnings were $129.2 million in the third quarter of fiscal 2013 compared to $106.9 million in 2012. Segment operating margin increased to 13.6 percent from 11.9 percent a year ago, primarily due to volume leverage and productivity.
Free cash flow was $263.6 million in the third quarter of fiscal 2013. Cash flow provided by operating activities was $293.9 million in the third quarter of fiscal 2013. Return on invested capital was 31.0 percent.