Strong demand continued in the third quarter across all our businesses, but global supply chain and COVID-19 disruptions to production and labor availability negatively impacted our financial results; approximately a $75 million impact to revenue and $75 million to operating profit in the quarter.
Company revenue was up slightly to a third quarter record of $1.06 billion with the benefit of strong price in the shipment constrained environment.
GAAP operating income was down 3%.
GAAP earnings per share from continuing operations was relatively flat at $3.41 compared to $3.42 in the prior year quarter.
Total segment profit was down 7% and total segment margin was down 120 basis points to 15.5%.
Adjusted earnings per share from continuing operations was down 4% to $3.40, including approximately $0.55 of negative impact from the global supply chain and COVID-19 disruptions.
Residential revenue was down 2% and segment profit was down 6%.
Segment margin was down 90 basis points to 20.3%.
For 2005 to 2010, 60% of air conditioners and heat pumps sold were R22.
Third quarter revenue was up 2%.
Commercial profit was down 42%.
Segment margin declined 800 basis points to 10.7%.
Within this, replacement revenue was up low-single-digits with planned replacement up more than 20% and emergency replacement down more than 30%.
The team won two National Account equipment customers in the third quarter to total 11 year-to-date.
VRF revenue was up more than 30%.
In Refrigeration, for the third quarter, revenue was up 10%.
North America revenue was up more than 20%.
Refrigeration segment profit was up 12% as margin expanded 20 basis points to 10.6%.
Backlog is up approximately 60% for Refrigeration and 90% for Commercial and order rates continued to be strong.
We currently expect a similar negative financial impact to our business as we saw in the third quarter, approximately $75 million of revenue and $25 million of operating profit.
The company yielded 4% price overall in the third quarter, including 5% in residential.
Our Refrigeration business has announced a price increase of 8% in North America effective for December 1.
Likewise, our European business has recently announced another round of increases generally from 5% to 10% to drive price in 2022.
Our Commercial business has announced a price increase of up to 13% effective January 1.
We are narrowing 2021 guidance for revenue from 12% to 16% to new range of 13% to 15%.
Foreign exchange is still expected to be a 1% favorable to revenue.
We are narrowing 2021 guidance for adjusted earnings per share from continuing operations from $12.10 to $12.70 to a new range of $12.10 to $12.30.
Our free cash flow guidance remains $400 million for the year.
The company yielded 4% in the third quarter, which had just one month of benefit from the third price increase this year.
In the third quarter, revenue from Residential Heating & Cooling was $711 million, down 2%.
Volume was down 6%, price was up 5% and mix was down 1% with foreign exchange neutral to revenue.
Residential segment profit was $144 million, down 6%.
Segment margin was 20.3%, down 90 basis points.
In the third quarter, Commercial revenue was $212 million, up 2%.
Volume was down 6%, price was up 1% and mix was up 6%.
Foreign exchange had a positive 1% impact to revenue.
Commercial segment profit was $23 million, down 42%.
Segment margin was 10.7%, down 800 basis points.
In Refrigeration, revenue was $137 million, up 10%.
Volume was up 9%, price was up 2% and mix was down 1%.
Refrigeration segment profit was $15 million, up 12%.
Segment margin was 10.6%, which was up 20 basis points.
Regarding special items in the quarter, the company had net after-tax benefit of $0.5 million that included a benefit of $2.7 million for excess tax benefits from share-based compensation and a net charge of $2.4 million in total for various items excluded from segment profit, including personal protective equipment and facility deep cleaning expenses incurred due to the COVID-19 pandemic and a net benefit of $0.2 million for other items.
Corporate expense was $16 million in the third quarter, down from $28 million in the prior year quarter, primarily due to lower incentive compensation.
Overall, SG&A was $134 million compared to $152 million in the prior year quarter.
SG&A was down as a percent of revenue to 12.7% from 14.4% in the prior year quarter.
In the third quarter, cash from operations was $222 million compared to $440 million in the prior year quarter.
Capital expenditures were $23 million in the third quarter compared to approximately $12 million in the prior year quarter.
Free cash flow was $199 million in the third quarter compared to $428 million in the prior year quarter.
The company paid $34 million in dividends and repurchased $200 million of stock in the quarter.
Total debt was $1.28 billion at the end of the third quarter and we ended the quarter with a debt to EBITDA ratio of 1.8.
Cash, cash equivalents and short-term investments were $44 million at the end of the third quarter.
For the company, we are now narrowing guidance for 2021 revenue growth from 12% to 16% to a new range of 13% to 15% and we still expect a 1% benefit to revenue from foreign exchange.
We are narrowing guidance for 2021 GAAP earnings per share from continuing operations from $11.97 to $12.57 to a new range of $11.97 to $12.17.
And we are narrowing 2021 guidance for adjusted earnings per share from continuing operations from $12.10 to $12.70 to a new range of $12.10 to $12.30.
And as previously mentioned, the fourth quarter of 2021 will have a headwind of 6% from fewer days than the prior year quarter.
The first quarter of 2021 had a 6% benefit from more days in the prior year quarter.
We now expect a benefit of $130 million from price for the year, up from prior guidance of $110 million benefit.
We continue to -- with continued inflation in components, we are reducing our net savings from sourcing and engineering-led cost reduction to neutral, down from prior guidance to be a $5 million benefit.
We now expect LIFO accounting adjustments to be approximately $20 million this year, up from a prior guidance of $15 million due to higher material costs from inflationary pressures.
About 40% of that was in the third quarter and about 40% is expected in the fourth quarter.
Factory productivity is now expected to be a $10 million headwind, down from prior guidance to be a $10 million benefit.
Residential mix is swinging from a $10 million headwind -- excuse me, swinging to a $10 million headwind from a $10 million benefit.
And corporate expense is now expected to be $95 million, down from prior guidance of $100 million on lower incentive compensation.
Overall, SG&A is now expected to be approximately a $40 million headwind, down from prior guidance of $45 million.
For headwinds that are unchanged from our prior guidance, commodities are still expected to be a headwind of $80 million and freight is still expected to be a $5 million headwind with tariffs still expected to be a $5 million headwind as well.
Foreign exchange is still expected to be a $10 million benefit.
We still expect a net interest and pension expense to be approximately $35 million.
The effective tax rate guidance remains approximately 20% on an adjusted basis for the full year.
And we still expect capital expenditures to be approximately $135 million this year, about $30 million of which is for the third plant at our campus in Saltillo, Mexico.
And we expect nearly a $10 million in annual savings from that third plant.
Free cash flow is targeted to be approximately $400 million for the full year.
In the third quarter, we repurchased $200 million of stock to complete our target of $600 million for the full year.
And then guidance for our weighted average diluted share count for the full year remains between 37 million to 38 million shares.

Summary:
Company revenue was up slightly to a third quarter record of $1.06 billion with the benefit of strong price in the shipment constrained environment.
GAAP earnings per share from continuing operations was relatively flat at $3.41 compared to $3.42 in the prior year quarter.
Adjusted earnings per share from continuing operations was down 4% to $3.40, including approximately $0.55 of negative impact from the global supply chain and COVID-19 disruptions.
We are narrowing 2021 guidance for revenue from 12% to 16% to new range of 13% to 15%.
We are narrowing 2021 guidance for adjusted earnings per share from continuing operations from $12.10 to $12.70 to a new range of $12.10 to $12.30.
For the company, we are now narrowing guidance for 2021 revenue growth from 12% to 16% to a new range of 13% to 15% and we still expect a 1% benefit to revenue from foreign exchange.
We are narrowing guidance for 2021 GAAP earnings per share from continuing operations from $11.97 to $12.57 to a new range of $11.97 to $12.17.
And we are narrowing 2021 guidance for adjusted earnings per share from continuing operations from $12.10 to $12.70 to a new range of $12.10 to $12.30.
And we still expect capital expenditures to be approximately $135 million this year, about $30 million of which is for the third plant at our campus in Saltillo, Mexico.