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•Third quarter sales of $969 million.
•Third quarter GAAP EPS of $0.86 and adjusted EPS of $0.89.
•The company updates its full year 2021 GAAP EPS guidance to approximately $3.19 to $3.25 and on an adjusted basis to approximately $3.34 to $3.40.
Third quarter 2021 operating income was $167 million, up 31 percent compared to operating income for the third quarter of 2020, and return on sales (“ROS”) was 17.3 percent, an increase of 130 basis points when compared to the third quarter of 2020. On an adjusted basis, the company reported segment income of $180 million for the third quarter of 2021, up 28 percent compared to segment income for the third quarter of 2020, and ROS was 18.5 percent, an increase of 90 basis points when compared to the third quarter of 2020.
Consumer Solutions sales were up 30 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 26 percent in the third quarter. Segment income of $144 million was up 27 percent compared to the third quarter of 2020, and ROS was 23.5 percent, a decrease of 70 basis points when compared to the third quarter of 2020.
Industrial & Flow Technologies sales were up 8 percent compared to sales for the same period last year. Excluding currency translation, core sales grew 8 percent in the third quarter. Segment income of $52 million was up 23 percent compared to the third quarter of 2020, and ROS was 14.8 percent, an increase of 180 basis points when compared to the third quarter of 2020.
Net cash provided by operating activities of continuing operations was $179 million compared to $234 million in the third quarter of 2020 and free cash flow provided by continuing operations for the quarter was $165 million compared to $220 million in the third quarter of 2020.
Net cash provided by operating activities of continuing operations in the nine months ended September 30, 2021 was $540 million compared to $501 million in the first nine months of the previous year and free cash flow provided by continuing operations in the nine months ended September 30, 2021 was $506 million compared to $457 million in the first nine months of the previous year.
Pentair paid a regular cash dividend of $0.20 per share in the third quarter of 2021. Pentair previously announced on September 21, 2021 that it will pay a regular quarterly cash dividend of $0.20 per share on November 5, 2021 to shareholders of record at the close of business on October 22, 2021. This year marks the 45th consecutive year that Pentair has increased its dividend.
John L. Stauch, Pentair’s President and Chief Executive Officer commented: “I would like to thank our Pentair teams for once again helping us meet our commitments in the face of unprecedented material shortages and inflation. Pentair delivered another quarter of strong double digit sales and EPS growth reflecting the demand across our entire portfolio. Our backlog remains at a record level, which gives us confidence in our ability to continue our strong momentum. We have made great strides in increasing our capacity throughout this period of robust demand, however, we expect material shortages and logistical constraints to remain a challenge in the near term.”
“We remain focused on driving our strategic growth initiatives and we have completed two acquisitions this year that accelerate our Pool and Water Treatment businesses. We continue to believe that we are in attractive spaces and that the strength of our portfolio, along with strong cash flow and our healthy balance sheet, enables us to continue investing in our core business, pursue strategic acquisitions, drive transformation, deliver for customers, and create value for our shareholders.”