Consolidated Results

Sales for the quarter increased 13 percent (15 percent at consistent currency translation rates), including increases of 11 percent in the Americas, 28 percent in Europe (38 percent at consistent translation rates) and 4 percent in Asia Pacific. Year-to-date sales increased 12 percent (13 percent at consistent translation rates), with increases of 11 percent in the Americas, 17 percent in Europe (24 percent at consistent translation rates) and 9 percent in Asia Pacific.

Sales for the quarter included $30 million from Powder Finishing operations acquired at the beginning of April, including $7 million in the Americas, $16 million in Europe and $7 million in Asia Pacific. Year-to-date sales included $62 million from Powder Finishing, including $13 million in the Americas, $32 million in Europe and $17 million in Asia Pacific. For the quarter, sales at consistent translation rates and before acquisitions were up 5 percent in the Americas, up 4 percent in Europe and down 10 percent in Asia Pacific. On the same basis, year-to-date sales were up 7 percent in the Americas, up 3 percent in Europe and down 1 percent in Asia Pacific.

Gross profit margin, expressed as a percentage of sales, was 55 percent for the quarter and 54 percent year-to-date, down 1 percentage point from the third quarter last year and 2 percentage points lower than last year-to-date. For the quarter and year-to-date, the unfavorable effects of currency translation, higher material costs and lower margin rates on acquired Powder Finishing operations were offset somewhat by realized price increases. Non-recurring purchase accounting effects totaling $7 million related to inventory reduced year-to-date gross margin percentage by approximately 1 percentage point.

Total operating expenses for the quarter increased $14 million, including $8 million from Powder Finishing operations. Increases in product development and general and administrative costs were partially offset by changes in currency translation rates. Year-to-date operating expenses increased $34 million, including $16 million from Powder Finishing and a $9 million increase in acquisition and divestiture expenses.

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