Local currency sales was 16%, and we had broad-based growth in all regions.
With our strong sales growth and good execution, we achieved a 19% growth in adjusted operating income and a 24% increase in adjusted EPS.
Sales were $952 million in the quarter, an increase of 16% in local currency.
On a U.S. dollar basis, sales increased 18% as currency benefited sales growth by 2% in the quarter.
The PendoTECH acquisition contributed approximately 1% to local currency sales growth in the quarter, while we estimate that COVID testing was a headwind of approximately 1% to sales growth.
Local currency sales increased 20% in the Americas, 10% in Europe and 16% in Asia/Rest of the World.
Local currency sales increased 19% in China in the quarter.
Local currency sales grew 20% for the nine months with a 21% increase in the Americas, 15% in Europe, and 23% growth in Asia/Rest of World.
For the third quarter, Laboratory sales increased 23%, Industrial increased 12%, with core Industrial up 11% and product inspection up 13%.
Food Retail came in worse than we expected with a decline of 19% in the quarter.
Laboratory sales increased 26%, Industrial increased 16%, with core Industrial up 21% and product inspection up 9%.
Food Retail declined 1% for the nine-month period.
Gross margin in the quarter was 58.4%, a 20 basis point increase over the prior year level of 58.2%.
R and D amounted to $42.3 million in the quarter, which is a 19% increase in local currency over the prior period.
SG and A amounted to $240.7 million, a 16% increase in local currency over the prior year.
Adjusted operating profit amounted to $272.8 million in the quarter, a 19% increase over the prior year amount of $230 million.
Adjusted operating margins reached 28.7%, a 20 basis point increase over the prior year level of 28.5%.
On a teo-year combined basis, our margins were up 270 basis points as the prior year margin benefited from the cost actions we implemented due to the pandemic.
A couple of final comments on the P and L. Amortization amounted to $16 million in the quarter, interest expense was $11.8 million in the quarter, other income in the quarter amounted to $3.3 million primarily reflecting nonservice-related pension income.
Our effective tax rate before discrete items and adjusted for the timing of stock option deductions was 19.5%.
Fully diluted shares amounted to $23.4 million in the quarter, which is a 3% decline from the prior year.
Adjusted earnings per share for the quarter was $8.72, a 24% increase over the prior year amount of $7.02.
On a reported basis in the quarter, earnings per share was $8.71 as compared to $6.68 in the prior year.
Reported earnings per share in the quarter includes $0.18 of purchased intangible amortization, $0.02 of restructuring offset by $0.19 due to the difference between our quarterly and annual tax rate due to the timing of stock option exercises.
Local currency sales grew 20%, adjusted operating income increased 35%, with margins up 210 basis points.
Adjusted earnings per share grew 43% on a year-to-date basis.
In the quarter, adjusted free cash flow amounted to $243.1 million, which is an increase of 19% and on a per share basis as compared to the prior year.
DSO was 35 days, which is two days less than the prior year.
ITO came in at 4.5 times, which is slightly better than last year.
On a year-to-date basis, adjusted free cash flow amounted to $615.3 million, an increase of 48% on a per share basis as compared to the prior year.
For the full year 2021, we now expect local currency sales growth in 2021 and to be approximately 17%.
This compares to previous guidance of 15%.
We expect full year adjusted earnings per share to be in the range of $33.35 to $33.40, which is a growth rate of 30%.
This compares to previous guidance of adjusted earnings per share in the range of $32.60 to $32.90.
With respect to the fourth quarter, we would expect local currency sales growth to be approximately 8% and expect adjusted earnings per share to be in the range of $10 to $10.05, a growth rate of 8% to 9%.
For the full year 2022, based on our assessment of market conditions today, we would expect local currency sales growth to be approximately 6% and adjusted earnings per share to be in the range of $37.25 to $37.65.
Using the midpoint of 2021 guidance, this reflects a growth rate of 12% to 13%.
We expect interest expense to be approximately $50 million in 2022 in total amortization, including purchase intangible amortization to be $65 million.
Purchase intangible amortization is excluded from adjusted earnings per share and is estimated at $24 million on a pre-tax basis or $0.79 per share in 2022.
In 2022, other income, which is below operating profit, will amount to approximately $13.5 million.
This is higher than the $10.7 million expected in 2021 due to an expected increase in pension income.
Finally, we assume our effective tax rate before discrete items will be 19.5% in both 2021 and 2022.
In terms of free cash flow for 2021, we now estimate it will reach $810 million, which reflects a 29% growth on a per share basis.
For 2022, we would estimate free cash flow in the range of $845 million.
Once we get beyond 2022, we expect free cash flow per share will grow in line with earnings per share and net income conversion will be in the 100% range.
We expect to repurchase approximately $1 billion in shares in both 2021 and 2022, which should allow us to maintain a net debt-to-EBITDA ratio of approximately 1.5 times.
With respect to the impact of currency on sales growth, we expect currency to increase sales growth by approximately 3% in 2021 and be relatively neutral to sales growth in Q4.
In 2022, we would expect currency to decrease sales growth by approximately 1%.
In terms of adjusted EPS, currency will benefit growth by approximately 4% in 2021 and be a slight headwind to adjusted earnings per share growth in 2022.
An additional nice development within our Lab business is that we obtained a $36 million grant from the U.S. Department of Defense to expand our pipette tip production in California.
We estimate that by the end of 2023, we will expand our global tip production by approximately 15% and the grant will also allow us to enhance manufacturing, automation and warehouse and logistics surrounding tips.
Product Inspection grew 13% in the quarter.
Finally, Food Retail declined 19% with pronounced declines in Americas and Asia and Rest of the World.
Sales in Europe increased 10% in the quarter with very strong growth in Lab.
Americas increased 20% in the quarter with excellent growth in Lab, core Industrial and Product Inspection.
Finally, Asia and the Rest of the World grew 16% in the quarter with outstanding growth in Laboratory and good growth in Product Inspection.
Service and Consumables performed well and were up 12% in the quarter.

Summary:
On a U.S. dollar basis, sales increased 18% as currency benefited sales growth by 2% in the quarter.
Adjusted earnings per share for the quarter was $8.72, a 24% increase over the prior year amount of $7.02.
On a reported basis in the quarter, earnings per share was $8.71 as compared to $6.68 in the prior year.
With respect to the fourth quarter, we would expect local currency sales growth to be approximately 8% and expect adjusted earnings per share to be in the range of $10 to $10.05, a growth rate of 8% to 9%.
For the full year 2022, based on our assessment of market conditions today, we would expect local currency sales growth to be approximately 6% and adjusted earnings per share to be in the range of $37.25 to $37.65.