Third quarter net sales were $4.7 billion, up 5%, with underlying sales up 2% excluding unfavorable currency of 2% and a positive impact from acquisitions of 5%. Growth was below management expectations across both business platforms due to softer conditions in global discrete manufacturing end markets and cooler, wet weather conditions in North America that unfavorably impacted air conditioning and construction markets.
Third quarter gross profit margin of 42.7% was down 90 basis points compared with the prior year, primarily reflecting dilution from recent acquisitions and unfavorable mix.
Third quarter operating cash flow was up 2% to $946 million, and free cash flow was up 3% to $825 million. Conversion of net earnings to free cash flow was 135% in the quarter.
“Trends remain solid in our global process and hybrid markets, and we continue to see consistent growth in our long-cycle businesses. Global discrete end markets decelerated in the third quarter, and our North America growth was further hampered by subdued upstream oil and gas demand,” said David N. Farr, chairman and CEO.