Other deductions was essentially flat as higher restructuring of $14 million and currency transaction losses of $11 million were offset by the payments received related to dumping duties of $37 million under the US Continued Dumping and Subsidy Offset Act. Pretax margin reflected an increase of 200 basis points.

Next slide, cash flow. Operating cash flow decreased 6% as strong earnings were offset by higher receivables related to sales timing. Free cash flow was essentially flat to prior year with strong conversion from earnings at 90%. Trade working capital as a percent of sales was even to prior year benefiting from strong inventory performance.

Moving to slide 7, business segment earnings. Business segment margin of 18.5% improved 160 basis points reflecting strong volume leverage and cost production benefit as well as the dumping duty payments received as mentioned earlier.

Corporate expense declined $14 million, primarily due to lower stock compensation expense and interest expense decreased 8%.

Moving to slide eight, Process Management results. Process management net sales grew 19% and underlying sales grew 23% as currency translation deducted 4%. By region, the US was up 29%, Asia up 25%, Europe up 14%, Latin America up 33% and Middle East and Africa up 13%.

Robust investment in oil and gas, chemical and power industries drove growth in all businesses and geographies. Sales benefited from approximately $130 million of converted backlog related to the Thailand flooding supply chain disruption. Segment margin of 23.1% improved 270 basis points, primarily driven by volume leverage and cost reduction benefits.

Year-to-date underlying orders have grown 17%, with the US up over 20% which has driven backlog of 15% from the prior year. Continued energy in market strength and the high backlog supported strong outlook for the next several quarters.

Next slide, Industrial Automation. Industrial automation net sales decreased 1%, but excluding currency translation grew to 3%, with the US up 12%, Asia flat, Europe down 4%, Latin America up 9% and Middle East and Africa down 1%.

Read the rest of this transcript for free on seekingalpha.com

If you liked this article you might like

European Benchmarks Sink Despite Solid Corporate Earnings

Steel Stocks Could Have Up to 50% Upside

Emerson Is Flashing Bullish Signs: 'Off The Charts' With Cramer

Navigating Strong Crosscurrents: Cramer's 'Mad Money' Recap (Tuesday 6/13/17)