You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Today, I am joined by President and Chief Executive Officer, Lal Karsanbhai; Chief Financial Officer, Frank Dellaquila; and Chief Operating Officer, Ram Krishnan.
Colleen joins us from the Automation Solutions finance organization and will be your main point of contact going forward as I transition to a new role in the operating business units.
I certainly wish you health and success.
Please join me on slide two.
I certainly have big shoes to fill.
As Pete mentioned, I'm coming into this role from our Automation Solutions finance organization, and I've been with Emerson for over 13 years.
I'm certainly excited and humbled to be joining the Investor Relations team during this dynamic time for our organization.
I look forward to speaking with all our investors and partners very soon.
Now I would like to take a moment to highlight two areas of real ESG impact within Emerson.
First, on slide three, in keeping with environmental sustainability framework of greening of, by and with Emerson that we introduced in February, our first topic is about greening by Emerson.
It is a great example of how Emerson solutions are relevant in enabling our customers' sustainability initiatives.
Emerson recently signed a multiyear agreement with PureCycle Technologies, which has a novel technology and process for fully recycling plastic number five polypropylene back to a clear pellet.
As some of you may know, polypropylene is a common form of plastic that has not had great recycling options.
Emerson is serving as their born digital automation partner going forward with initial plant projects in Ohio, Georgia and a remote operation center in Florida.
Now please join me on slide number four.
Our second topic is the greening with Emerson example.
Leveraging our Helix Innovation Center in Dayton, Ohio, Emerson has collaborated with the Department of Energy and their Oak Ridge National Laboratory to advance next-generation HVACR technology.
Expanding the applicability of heat pump technologies, redesigning refrigeration architectures to maximize efficiency in food retail and working to minimize energy use and leaks in commercial HVAC applications are just a few of the exciting areas of cooperation.
We have a number of collaborations with the Department of Energy and their labs.
We look forward to continuing to build these relationships and support the development of novel solutions and real sustainability road maps going forward.
God speed and have a good luck in your new opportunity.
Great to have you here.
Colleen and I had the opportunity to spend couple of years together in Automation Solutions, and we're very blessed to have her join our Investor Relations team.
And we have a lot of energy and momentum behind us, which was very exciting to see as we executed through the last three months.
I had the opportunity over the last six months to meet many of you, and I look forward to meeting more of you as I go through the next part of the year.
But I appreciate your continued confidence, your challenges and of course, your investment.
A few things just that are not financially related that I want to mention to the team here.
First of all, our cultural work is well underway.
We will be announcing our new Chief People Officer later this month.
We're all very excited about the selection process.
It will be an outside hire and somebody who fundamentally will have the opportunity to come in here and really help us as we navigate some of the challenges and create many of the pathways that we have as we evolve the culture of Emerson into the future.
Secondly, our portfolio work is complete.
We have -- we are now getting ready to review it with the Board, which will occur at the October Board meeting.
We discussed briefly with the Board yesterday.
And essentially, what we have defined is multiple paths for our business to drive higher underlying sales growth and diversification of the portfolio.
We're all very excited about the process that we underwent.
It was very exhaustive, and we have turned over a lot of different stones, defining broad markets with high growth and lots of optionality in terms of M&A and organic activity.
I'll mention on the M&A side that industrial software continues to be critical as we think about share of wallet, as we think about the potential for underlying growth acceleration and our many pathways there.
Our SI acquisition is performing incredibly well and ahead of our internal synergy board plans.
So that's been very, very well done.
But what stands out to me most above all is the execution by the team.
Yes, there were market tailwinds, and we'll talk about those, particularly as they accelerated in Automation Solutions and continued across our Commercial & Residential businesses and they are relevant, but the execution was absolutely phenomenal.
There were a lot of hurdles to overcome through the quarter, material inflation, material availability.
We did a lot of expediting.
We had to get very creative in qualifying suppliers, logistics and management of cargo around the world and of course, labor availability in the United States.
But the team just did a great job.
And we're seeing, despite these operational headwinds, the value of that work being reflected in the incrementals of the company.
The operating leverage -- profit leverage at 34% was very strong and now most importantly, has given us the room to accelerate investment in differentiating technologies and further -- that will further, I think, drive relevance -- increased relevance at our customer base.
So very exciting headroom that's created, and we started those investments.
And I'll share a number of those with you, and we'll talk about that more as we go through the year.
We're especially pleased with the results in the quarter, especially in light of the operations challenges that Lal just described and Ram will talk about a little later in the call.
If you please go to slide six.
So a continued recovery in our end markets, combined with the benefits of the cost reset actions, and it drove strong operating performance and financial results in the third quarter.
Adjusted earnings per share was $1.09, up 36% from the prior year.
Demand continues to strengthen with sales coming in ahead of our expectations with underlying growth of 15%, and June trailing 3-month orders were at 26%.
Automation Solutions notably turned positive this quarter in both sales and orders, up 9% in sales and 17% on an underlying basis.
Commercial & Residential Solutions continues to experience robust demand across the business and geographies with 29% sales growth and 43% orders growth on an underlying basis.
The cost reset benefits continued to be realized as planned reading through to the margins.
And along with the additional volume and leverage, they drove adjusted segment EBIT growth of 40%, 280 basis points of increased margin to 19.6%.
Cash flow continues to be very strong with operating and free cash flow up approximately 30% year-over-year and free cash flow conversion exceeding 150% of net earnings.
We're continuing to implement the remaining elements of the cost reset program.
In this quarter, we initiated $32 million of restructuring actions.
The program is on schedule and delivering the projected savings as we've planned.
This is a bridge of the earnings per share increase from the prior year.
The operational performance was very strong.
So the noteworthy thing on this chart is the green bar.
Operations added 33% to adjusted EPS, and it was balanced between the platforms.
They both delivered strong profit leverage on the strength of volume increases and cost reduction benefits, as Lal mentioned.
Leverage was 34% across the enterprise.
Tax, currency, pension, stock comp netted to a $0.05 headwind, and there was a minor favorable impact from share repurchase.
Again, in total, adjusted earnings per share was $1.09, up 36%.
Please go to the next chart, Chart number eight.
So as I mentioned, underlying sales is up 15%.
Gross profit increased 90 basis points to 42.4%, driven mainly by the benefits of the cost reduction actions and then the leverage on the volume across the enterprise.
We did offset the impact of price/cost headwinds, which we are beginning to see intensify and which we will see in the next couple of quarters and we will talk about a little later in the call.
Adjusted EBIT margin was 18.4%, up 310 basis points.
Effective tax rate was 19.2% versus 11% in the prior year.
Last year, we had several favorable discrete items, mostly around R&D credits that we described at the time.
This was a $0.10 headwind year-over-year that we overcame.
Adjusted EPS, as mentioned, was $1.09 versus $0.80 last year.
If you go to slide nine, please, we'll talk about earnings and cash flow.
Adjusted segment EBIT again increased 40%, margin up 280 basis points.
The leverage on volume and cost reset benefits offset material cost headwinds in the Climate Technologies business.
Adjusted pre-tax earnings increased 350 basis points to 17.6%.
Operating cash flow was very strong, up 31% at $1.1 billion.
Free cash flow was $977 million, also up a little over 30%, driven by strong earnings growth and effective working capital management.
Lastly, the trade working capital ratio improved to 15.4% of sales.
Turning to slide 10, we'll look at Automation Solutions.
Underlying sales turned positive this quarter at 8%.
Trailing 3-month orders accelerated to 17%.
The improvement in the Americas is particularly encouraging and notable with continued momentum in life sciences, food and beverage and medical markets and a return to growth more broadly across the traditional process automation markets and sustainability-related business.
We're seeing increasing KOB three activity across our process automation customer base mainly driven by shutdown turnaround and outage activity and opex spend.
MRO spend is returning to pre-pandemic levels from pent-up demand and delayed STOs.
capex spending is recovering at a slower rate with tailwinds from site-based emissions and optimization projects.
The platform continues to implement the comprehensive restructuring actions that have been ongoing, and the benefits are flowing through to the financial results.
Adjusted EBIT margin increased 320 basis points and 310 basis points at adjusted EBITDA, driven mainly by the flow-through of the cost reset savings and by the volume leverage.
The integration of OSI continues to go very well.
We're very pleased with the acquisition and the results to date, and we have increasing confidence in the synergy plan that we have.
Backlog increased to $5.5 billion.
It is up 17% year-to-date.
We'll talk a bit about the project funnel and other opportunities later in the call.
Turning to slide 11, we'll review Commercial & Residential Solutions.
Sales were up on an underlying basis 29% versus the prior year.
Orders continue to be strong and very broad-based in their strength.
The June trailing 3-month underlying orders were up 43%, and it was very balanced across both Climate Technologies and Tools & Home products.
All our businesses and geographies showed strong double-digit growth.
Residential markets continue to be strong and growth has accelerated in Cold Chain and Professional Tools.
The Americas were up 29% with continued strength across all end markets.
Europe was up 37%, driven by continued heat pump demand and increasing sales of professional tools.
Asia, Middle East and Africa was up 25%, driven by Cold Chain and various heating technologies.
Margins improved by 170 basis points of adjusted EBIT and 120 basis points of adjusted EBITDA driven by the strong volume leverage and the cost reset savings, which more than offset the price/cost headwinds that we are seeing in the business.
I'm going to pass this over to Ram, and he's going to talk a bit about operations, what we've done in the quarter to deliver the results and some of the challenges that we face.
Clearly, as you can see, our operating environment remains very challenging as commodity inflation, electronic supply and labor availability continues to impact our global operations.
Steel prices are at record highs with 11 months of consecutive increases and in our estimation, have not peaked yet.
Plastic resin prices remain elevated as our global teams have maneuvered expeditiously defined alternatives to maintain supply.
And while copper pricing has receded off record highs, it is still up over $1.40 a pound year-over-year.
Our hedge positions lessened the impact to 2021, but the inflation impact in terms of copper will carry over into most of 2022.
Electronics shortages are proliferating in most of our businesses, impacting both platforms, and supply is expected to remain constrained well into 2022.
Very little component inventory on microprocessors, controllers, linear integrated circuits are available in the open market, and the number of shortages faced by our EMS suppliers is growing, severely impacting lead times.
And finally, labor availability continues to be an issue across many industries in the U.S., and our businesses are impacted as well.
Our V-shaped demand recovery in many of our Commercial & Residential Solutions businesses, local competition driven by tight labor markets in many cities and rolling labor constraints as waves of COVID disruptions impact our sites has added a new level of complexity to our operational plans.
It is important to note that price/cost remains at an unfavorable $75 million as we estimated last quarter.
No change, but we expect the maximum impact of the commodity inflation to be felt in the next two quarters.
Now despite these challenges, turning to slide 13, I'd like to highlight some of the outstanding work by our global supply chain and operations teams to combat these challenges and help deliver phenomenal operational results to date as they remain flexible, creative and nimble in a dynamic environment to serve the needs of our customers.
Our supply chain teams have worked tirelessly in this environment to ensure continuity of material supply to our global plants.
As you can see on the chart, many creative solutions are being implemented on a real-time basis quickly and effectively.
Our regional footprint, both on the manufacturing side as well as supply chain that we spent many years developing, has certainly been an advantage for us in these challenging times.
Many of our global plants are producing at record levels while ramping up capacity to meet surge demand and in many cases, in-sourcing critical elements of the supply chain to address sudden disruptions.
Let's turn now to slide 15.
We are improving our sales outlook for the year based on the continued strength in our orders, the pace of business and the year-to-date profit performance.
We now expect underlying sales growth to be near the top of our May guidance of approximately 5% to 6%, Commercial Residential above their range in May at 15% to 16% and Automation Solutions closer to the top of that range at 0% to 1%.
The strong volume and improved cost base will flow through to margins.
Our estimates are now 50 basis points above the previous guidance, increasing adjusted EBIT margin and adjusted EBITDA by 0.5% to approximately 18% and 23%, respectively.
There's no change to the restructuring, tax rate, capital spend or dividend.
Strong profitability and working capital performance enabled an increase in our operating cash flow and free cash flow estimates, both of which increased by $300 million.
We are also raising our adjusted earnings per share guidance to $4.07, plus or minus $0.01.
Our price/cost headwind for 2021 currently remains as estimated in Q2 and Ram covered at $75 million despite the current challenges that were highlighted.
We continue to manage this through containment, selective price actions, but the recent market developments that Ram described will be challenged through the next two quarters as we navigate them.
Stock compensation impact increases to $125 million.
So now we'll go over to Chart 16, and I'll just frame the order environment that we've experienced through the last three months.
Emerson's trailing 3-month orders continue to be very strong and have momentum from the last update we gave you in the second quarter, with Commercial & Residential Solutions continuing to climb higher in their order run rates and Automation Solutions turned sharply positive to the high teens in June.
Commercial & Residential Solutions continues to see strength in Residential, Cold Chain and the Professional Tools business, and all three very near to that average band of 43%.
Discrete and hybrid end markets in Automation Solutions continue to be very strong, while we see recovery in later cycle process automation markets, especially in North America.
KOB three and KOB two are driving most of the recovery, but we are beginning to see some KOB one activity materialize, particularly in chemicals, power and biofuels.
The Americas really strengthened, up 29% as deferred maintenance demand and site access drove momentum.
Finally, as we have commented in the past quarters, life sciences momentum continues to be extremely strong.
Let's now turn to Chart 17, and I'll review the underlying sales growth outlook.
Q3 underlying sales were up 15% versus prior year, exceeding our management expectations, driven by the strength in Commercial & Residential Solutions as well as the North America recovery just discussed.
Full year expectations on underlying sales are between 5% and 6%, at the top end of our prior guidance of 3% to 6% and sales of approximately $18.4 billion.
The fourth quarter is expected to land in the high single digits to low double-digit range.
For the remainder of the year, we expect to see the North America business continue to recover in Automation Solutions as well as continued broad strength in commercial residential solutions.
However, the impact of supply chain and labor issues will be a challenge.
As Frank mentioned, for the full year, we are expecting Automation Solutions sales to be flat to 1% and Commercial & Residential Solutions to be between 15% and 16%, driving us to our overall 5% to 6% underlying sales expectations.
So starting off in the Americas.
Quarter four is expected to be strong in Automation Solutions at approximately 20% growth, broad-based recovery across all industries, led by continued strength in discrete and increasing strength in hybrid.
Process is showing some recovery, although uneven with some strength from returning domestic oil demand, offset by reduced midstream investment and continued fiscal restraint in upstream.
For KOB 3, we expect to see continued spend for deferred maintenance and increasing spend for site access that has been pent-up from the pandemic with an expectation that we will see a strong fall shutdown turnaround season.
In Latin America, strength in mining industries particularly are expected to continue.
On the Commercial & Residential side of the business, ongoing momentum in the residential markets, driven by do-it-yourself trends, home starts and HVAC seasonality as well as strength in Professional Tools and Cold Chain are expected to continue.
Europe will continue to see demand in life sciences and biofuels on the automation side.
Project wins in power, midstream, downstream and sustainability will drive low to mid-single-digit growth in Q4.
Commercial & Residential will see robust demand for heat pumps and professional tools as well as the continuation of the refrigeration market recovery in Q4.
Turning to Asia, Middle East and Africa.
Our Asia automation business is seeing healthy project activity in marine, nuclear, life sciences and semiconductors and a positive trend for site-level spending in the Middle East.
On the Commercial & Residential side, we are seeing the commercial recovery across the region, specifically with commercial AC and cold chain solutions.
Ongoing COVID restrictions continue to be a challenge across the organization, particularly in this part of the world.
Let's now turn to Chart 19, and we'll review the business funnel for Automation Solutions.
So back in February, we commented that our traditional large project funnel was $6.4 billion, and this should be something that is very familiar to those of you who watch this carefully.
Since February, we have booked approximately $80 million of projects, some LNG and one most notably in Mexico.
New projects added include clean fuels, hydrogen, renewable diesels, lithium mining and LNG projects, while projects removed from the funnel since February were mostly oil and gas and downstream refining projects.
The August 2021 funnel is now valued at $6.3 billion in approximately 180 projects.
And below in the donut pies, you can see the industry mix of our traditional funnel.
We have identified new decarbonization opportunities.
And though generally smaller than our traditional definition of projects for our funnel classifications, these projects are increasingly relevant to our business.
They're being added into this view because they have the potential to grow in nature over time.
Today, as depicted on the chart, these opportunities are worth $400 million in approximately 120 projects.
The combination of our traditional project funnel and the new sustainability funnel is now valued at $6.7 billion.
And below is the combined industry mix where we are working to diversify our funnel.
On the right side of the chart, we are introducing the business opportunities with our recent OSI acquisition, which gave us an important foothold into the transmission and distribution automation space.
These opportunities have slightly different characteristics from our traditional project funnel definition, and therefore, we are keeping it separate for our discussion purposes today.
Generally, these opportunities are smaller and more numerous compared to our large traditional project funnel, but they are clearly strategically important.
The value of these opportunities is $1.5 billion and are made up of 530 projects.
To give you some perspective on the scale and how differentiated it is, approximately 15% of that $1.5 billion has a value of greater than $5 million, and 50% of it is between $1 million and $5 million.
The funnel is global, although approximately $1 billion of it is in North America and Europe.
Overall, we have strong opportunities ahead, and I'm bullish on overall project outlook as we diversify and expand into new spaces.
Now let's turn to Chart 20.
This is a very important chart.
And as Frank mentioned in our financial results showcase, our robust cost reset plan is being incredibly well executed across the enterprise.
As a reminder, this comprehensive plan began in late 2019 and will be fully realized by 2023.
It involves over $600 million in spend and approximately $650 million in savings.
In February, we also introduced our midrange targets of 24% adjusted EBITDA margins and $4.75 to $5 in adjusted EPS.
We are very much on track to reach those targets by 2023.
Importantly, however, the recent outperformance and momentum through the end of 2021 is creating some headroom for critical investments.
And I'm particularly excited about this, particularly as I think about key technologies that will enable our business to outperform over the long term.
As you can see, revenues, margins and cash flow are all better than February expectations and are enabling this acceleration in technology investments.
I've outlined four examples below and will come out over the next months and in depth in February as to how we're managing and thinking about these very significant investments.
Examples outlined are the Copeland K7 scroll, which is the largest new product investment in the history of our air conditioning business.
This thing drives obviously increased performance and meets the 2023 efficiency regulations and is optimized for 2025 refrigerants.
The Greenlee remote cutters, an award-winning tool on the right-hand side of the chart, which enhances safety for cutting underground cables.
The Gemini, which is our next-generation pressure and temperature device being developed in our Measurement Solutions business, which will have next-generation electronics, unmatched safety and process insight.
And lastly, our Plantweb Optics, our integrated operational performance platform, which unifies data, people and systems to drive operational performance.

user
compname reports q3 adjusted earnings per share of $1.09.
q3 adjusted earnings per share $1.09.
qtrly net sales were $4.7 billion up 20 percent from year prior.
sees 2021 net sales growth 9% - 10%.
sees 2021 gaap earnings per share $3.79 +/- $0.01.
sees 2021 adjusted earnings per share $4.07.
expect overall continued improvement in industrial and commercial demand over remainder of 2021.
expect operational, supply chain, and materials inflation environment to remain challenging through remainder of fiscal year.

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