Shawn Vadala
Chief Financial Officer at Mettler-Toledo International
Thanks, Patrick; and good morning, everyone. Sales in the quarter were $942.5 million, which represented a decrease in local currency of 5%. On a US dollar basis, sales declined 4% as currency increased sales growth by 1%. On Slide number 4, we showed sales growth by region. Local currency sales grew 4% in Europe, declined 3% in the Americas and declined 14% in Asia/Rest of the World. Local currency sales in China were significantly lower than expected and declined 25% in the quarter. On Slide number 5, we showed sales growth by region on a year-to-date basis.
Local currency sales grew 1% for the first nine months, with 4% growth in Europe and 1% growth in the Americas and 1% decline in Asia/Rest of the World. Local currency sales decreased 6% in China on a year-to-date basis. On Slide number 6, we summarized local currency sales growth by product area. For the quarter, Laboratory sales decreased 9% and Industrial decreased 6% with core industrial down 9% and Product Inspection, up 1%. Food Retail grew 49% in the quarter and benefited from significant project activity. Service sales grew 6% in the quarter.
The next slide shows local currency sales growth by product area on a year-to-date basis. Laboratory sales decreased 3% and Industrial increased 2%, including 1% growth in core industrial and 4% growth in Product Inspection. Food Retail increased 33%. Service sales grew 11% on a year-to-date basis. Let me move -- now move to the rest of the P&L, which is summarized on Slide number 8. Gross margin was 59.4%, an increase of 10 basis-points, as pricing was partially offset by our volume decline, higher cost, business mix and currency. R&D amounted to $46.1 million in the quarter, which is a 1% increase in local currency over the prior period, including increased project activity.
SG&A amounted to $217.4 million, a 9% decrease in local currency compared to the prior year and includes lower variable compensation and benefits from our cost savings initiatives. Adjusted operating profit amounted to $296 million in the quarter, a 4% decrease. Currency reduced operating profit growth by approximately 3%. Adjusted operating margin was 31.4%, which represents an increase of 20 basis points over the prior year. A couple of final comments on the P&L. Amortization amounted to $18.3 million in the quarter.
Interest expense was $20.3 million and other income amounted to $1.2 million. Our effective tax rate was 19% in the quarter. This rate is before discrete items and adjusting for the timing of stock option exercises in the quarter. We continue to expect our tax rate to be 19% for the full-year, and again, in the fourth quarter. Fully diluted shares amounted to 21.9 million, which is approximately a 3% decline from the prior year. Adjusted EPS for the quarter was $9.80, a 4% decrease over the prior year or a 1% decrease excluding unfavorable foreign currency.
On a reported basis, in the quarter, EPS was $9.21 as compared to $9.76 in the prior year. Reported EPS in the quarter includes $0.24 of purchased intangible amortization, $0.27 of restructuring costs, and $0.08 from the difference between our quarterly and annual tax rate due to the timing of stock option exercises. The next slide illustrates our year-to-date results. Local currency sales grew 1% for the nine-month period. Adjusted operating income increased 4% or 8% excluding unfavorable foreign currency and our operating margin expanded 140 basis points.
Adjusted EPS grew 4% on a year-to-date basis or 9% excluding unfavorable foreign currency. That covers the P&L. And let me now comment on cash flow. In the quarter, adjusted free cash flow amounted to $251.7 million, up $27 million, helped by favorable working capital. Year-to-date, cash flow per share grew 32%. DSO was 37 days, while ITO was 3.8 times. Let me now turn to our guidance for the remainder of this year and our initial thoughts on next year.
First, forecasting remains very challenging, particularly for our business in China. Our team in China has reacted to changing market conditions very quickly, and we feel very good about our market position in the country. However, economic conditions remain challenged and there's low visibility. Outside of China, there's also greater uncertainty today with weakness in our core end markets such as life sciences and continued soft economic conditions in Europe and the Americas.
We expect lower-than-normal customer year-end spending. The recent Middle East conflict also creates additional uncertainty. Secondly, our organization is not standing still during this period of reduced market demand, a defining attribute of our culture. The team has executed exceptionally well to adjust our cost structure to current market conditions, while at the same time, reallocating resources to support important investments in our long-term growth.
Now, turning to our guidance. For the full-year 2023, we expect local currency sales to decline approximately 1%. This compares to our previous guidance of 0% to 1% growth. We expect full-year adjusted EPS to be in the range of $39.10 to $39.30. This includes an expected headwind to adjusted EPS growth of approximately 3% to 4%. Free cash flow for the year is now expected to be approximately $875 million above our prior guidance, as our reduced profit forecast is more than offset by the favorable timing of tax payments and working capital.
Share repurchases will now be $900 million in 2023. With respect to the fourth quarter, we would expect local currency sales to decline 7% to 8%. We expect fourth quarter adjusted EPS to be in the range of $10.50 to $10.70. Currency is expected to increase sales by approximately 1%, but decrease EPS by approximately 1%. We have also provided our initial guidance for 2024 and based on our assessment of market conditions today, we would expect local currency sales to be approximately flattish and adjusted EPS to be in the range of $39.10 to $39.80, which represents a growth rate of 0% to 2% or 2% to 4% growth excluding adverse currency.
Relative to sales, currency is expected to be a headwind to sales growth of approximately 1% in 2024. Underpinning our 2024 guidance are the following assumptions. First, we expect our customers to remain cautious with spending in the first half of the year, reflecting the increased uncertainty in the economy. Our sales in China are also expected to decline in the first half of the year as economic trends are expected to remain weak and we faced challenging multi-year growth comparisons.
We expect our local currency sales to improve in the second half of the year as comparisons become easier and market conditions improve. Secondly, we expect our year-over-year margin performance to be dampened due to lower sales volume and a reset in our variable compensation programs, offset in part by our cost savings initiatives. Lastly, I'll share a few final comments on our 2024 guidance. We expect total amortization, including purchased intangible amortization to be approximately $73 million.
Purchased intangible amortization is excluded from adjusted EPS and is estimated at $25.8 million on a pretax basis, or $0.96 per share. Interest expense is forecasted at $86 million for the year and other income is estimated at approximately $5 million. We expect our tax rate before discrete items will remain at 19% in 2024. We expect free cash flow of approximately $850 million, representing a conversion of approximately 100% of adjusted net income. We also expect share repurchases will be approximately $850 million. That's it from my side. And I'll now turn it back to Patrick.
