Revenue grew 8% with organic growth of 6% and earnings per share of $2.02 was up 10%.
At the segment level, organic growth was led by welding at plus 22%; food equipment at plus 19%; Test & Measurement and Electronics at plus 12% and specialty products at plus 8%.
And as a result, our auto OEM segment revenues were down 11% in Q3 versus the minus 2% we were expecting as of the end of June.
In Q3, our people leveraged the combination of ITW's robust and highly flexible 80/20 front-to-back operating system.
And as a result, we were able to fully offset input cost increases on a dollar-for-dollar basis in Q3, resulting in 0 earnings per share impact from price cost in the quarter.
And, by the way, our teams also managed to continue to drive progress on our long-term strategy, execute on our Win the Recovery positioning initiative and deliver another 100 basis points of margin improvement benefit from enterprise initiatives.
As Scott said, demand remained strong in Q3 with total revenue of $3.6 billion an increase of 8% with organic growth of 6%.
Growth was positive in six or seven segments, ranging from 3% to 22% and in all geographic regions, led by North America, up 9%; Europe, up 1% and; Asia, up 5%.
China was up 2% versus prior year and up 6% sequentially.
GAAP earnings per share of $2.02 was up 10% and included a onetime tax benefit of $0.06.
Operating income increased 7% and operating margin was flat at 23.8% despite significant price cost headwinds.
Enterprise Initiatives were real positive again this quarter at 100 basis points, as was volume leverage, which contributed more than 100 basis points.
After-tax return on invested capital was 28.5% and free cash flow was $548 million.
Free cash flow conversion was 86% as our businesses have been very intentional about adding inventory to both support our growth and to mitigate supply chain risk and sustained world-class service levels for our customers.
Excluding our auto OEM segment, given the issues affecting that market right now, the rest of the company collectively delivered organic growth of 11%.
Operating income growth of 14% and an operating margin of 25% plus in Q3.
As you can see on this slide, if you eliminate the price/cost impact, our core incrementals were a very strong 52% in the third quarter, which points to the quality of growth and profitability leverage that define the core focus of our business model and strategy.
Organic revenue was down 11%, with North America down 12%, Europe, down 18%; and China, up 2%.
Turning to slide five for Food Equipment, and organic revenue growth was very strong at 19% and the Food Equipment recovery that began in Q2 continues to gain strength.
North America was up 18% with equipment up 20% and service up 14%.
Institutional revenue, which is about 1/3 of our revenue, increased more than 20%, with strength in education, up over 40% and healthcare and lodging growth of around 20%.
Restaurants were up almost 50% with strength across the board.
Strong demand is evident internationally as well with Europe up 20% and Asia Pacific, up 23%.
Equipment sales led the way up 26% with service growth of 8%.
Test & Measurement and Electronics organic revenue was strong with growth of 12%.
Test & Measurement was up 15%, driven by continued strength in customer capex spend and in our businesses that serve the semiconductor space.
Electronics grew 8% and operating margin was 26.8%.
Welding demand continued to be very strong with organic revenue growth of 22%.
Equipment revenue was up 25% and consumables grew 18%.
Our industrial businesses increased 32% in the commercial business, which sells to small businesses and individual users grew 18%.
North America was up 24% and international growth was 12% with continued recovery in oil and gas, which was up 9%.
Welding had an operating margin of 30% in the quarter.
Polymers & Fluids organic growth was 3%, with demand holding steady at the elevated levels that began in Q3 of last year.
And as such, had a tough comp of plus 6% a year ago.
In Q3, growth was led by the Polymers business, up 8% with continued strength in MRO and heavy industry applications.
Automotive aftermarket grew 4% with sustained strength in the retail channel.
And Fluids was down 5% due mostly to a decline in pandemic-related hygiene products versus prior year.
Margins were 24.2% with more than 250 basis points of negative margin impact from price cost driven by significantly higher costs for resins and silicone.
And a similar situation with construction, where organic growth was also up 3% and also on top of a strong year-ago growth rate of plus 8%.
All three regions delivered growth with North America up 2%, with residential renovation up 1%, on top of a plus 14% comp a year ago and commercial was up 10%.
Europe was up 8% and Australia and New Zealand was up 2%.
Specialty organic revenue was up 8%, driven by continued recovery in North America, which was up 15%, and international was down 4%.
Equipment sales were up 10% with consumables up almost 8%.
We now expect the Automotive OEM segment revenue to be down about 15% in the second half, including being down 20% in Q4 versus the forecast of roughly flat second half auto OEM revenues that was embedded in our previous guidance.
Our $8.40 midpoint equates to earnings growth of 27% for the full year.
We now expect full year revenue to be in the range of $14.2 billion to $14.3 billion, which is up 13% at the midpoint, with organic growth in the range of 11% to 12%.
Of that organic growth rate of 11% to 12% volume growth, including share gains are 8% with price of 3% to 4%.
For the full year, we expect operating margin of approximately 24%, which is up 100 basis points versus last year.
And the fact that we're expanding margins at all in this environment is pretty strong performance, considering that we now expect raw material costs to be up 9% or more than $400 million year-over-year, which is more than four times our expectation coming into this year.
As raw material costs and consequently, price have gone up more than what we predicted in our previous guidance, we now estimate margin dilution percentage impact from price cost for the full year at about 150 basis points versus our previous expectation of 100 basis points.
These margin headwinds though, will be offset by strong volume leverage of about 250 basis points and another solid contribution from enterprise initiatives of more than 100 basis points.
Free cash flow is expected to be approximately 90% of net income as we continue to prioritize sustaining our world-class service levels for our customers in this challenging environment, and as such, we will continue to invest in additional working capital to support our growth and mitigate supply chain risks.
And as per usual process, our guidance excludes any impact from the previously announced acquisition of the MTS Test and Simulation business.
So in summary, this will be a record year for ITW with double-digit organic growth, margin expansion, strong cash flow and earnings per share growth of 25% plus.

Summary:
Revenue grew 8% with organic growth of 6% and earnings per share of $2.02 was up 10%.
As Scott said, demand remained strong in Q3 with total revenue of $3.6 billion an increase of 8% with organic growth of 6%.
GAAP earnings per share of $2.02 was up 10% and included a onetime tax benefit of $0.06.
We now expect full year revenue to be in the range of $14.2 billion to $14.3 billion, which is up 13% at the midpoint, with organic growth in the range of 11% to 12%.
And as per usual process, our guidance excludes any impact from the previously announced acquisition of the MTS Test and Simulation business.