President and Chief Executive Officer at Amphenol
Well, thank you very much, Craig and allow me to extend my welcome to all of you on the phone here today and I certainly hope that all of you are having an enjoyable fall here, we are in beautiful Wallingford, Connecticut with a leaves turning a wonderful Autumn hue. I'm going to highlight our third quarter achievements, I'll then spend a little time to discuss the trends and our progress across our served markets. And then finally I'll comment on our outlook for the fourth quarter and the full-year of 2022, and of course, we'll have time for some questions at the end.
Turning to the third quarter, our results in the third quarter were much stronger than expected and exceeded the high end of our guidance in sales and adjusted diluted earnings per share. Sales grew a very strong 17% in U.S. dollars and 21% in local currencies, reaching a new record of just under $3.3 billion. On an organic basis, sales increased by 18% with broad-based growth across most of our served markets, as well as contributions from the company's acquisition program.
The company booked orders of $3,151 million, representing a book-to-bill as Craig mentioned of 0.96 to 1. I would say that despite this slightly negative book-to-bill, the company's order backlog remains very robust. We were pleased to deliver strong profitability in the quarter with adjusted operating margins reaching 21.0%, a 70 basis point increase from prior year and a 30 basis point increase from prior quarter. We achieved these results despite the continued wide range of the operational, inflationary and supply chain challenges around the world. Adjusted diluted EPS grew strongly from prior year, increasing by 23% to a new record of $0.80. And it's just really an excellent reflection of our organization's continued strong execution here in 2022.
Finally, the company generated record operating and free cash flow of $576 million and $457 million respectively here in the third quarter. I just want to say how proud I am of our entire organization around the world. Our results this quarter once again reflect the discipline and agility of Amphenol's entrepreneurial team as we continued to perform well amidst what is no doubt a very dynamic and challenging environment.
We're also pleased to announce that we closed the acquisition of Integrated Cable Assembly Holdings or ICA in September based in North America and with annual sales of approximately $90 million, ICA manufacturers a broad array of cable assemblies for a diverse -- diversified range of applications, particularly in the industrial market. This acquisition further expands our offering of high-technology, value-added interconnect products in the industrial market. As we welcome this outstanding new team to the company, we remain confident that our acquisition program will continue to create great value for Amphenol. In fact, our ability to identify and execute upon acquisitions and successfully bring these new companies into the Amphenol family remains a core competitive advantage for the company.
Now turning to the trends and our progress across our served markets, I would just comment that we're very pleased that the company's broad and balanced end-market diversification continues to create value for Amphenol. Importantly, and I've mentioned this many times before, our diversification mitigates the impact of the volatility of individual end-markets, while also exposing us to leading technologies wherever they may arise across the electronics industry and these are both very important benefits, in particular, in today's dynamic market environment.
I would also just mention that in the third quarter, each of our eight end-markets grew organically and seven of them in double-digits organically. So starting with the military market, that market represented 9% of our sales in the third quarter. Sales in this market grew 1% in U.S. dollars and 3% organically, which was a bit lower than our expectation heading into the quarter. On an organic basis, growth in space-related ground vehicles and avionics applications was offset by moderations of sales of products used in communications, rotorcraft and engine applications. Sequentially sales declined by just about 1%.
As we look into the fourth quarter, we expect a high-single digit sequential sales increase in the military market and for the full-year 2022, we now expect a low-single digit increase in sales from last year's levels. We continue to be very pleased with the strength of the company's broad position in the defense electronics market. As militaries around the world increased their adoption of a wide array of next-generation technologies in the face of what is no question an increasingly volatile geopolitical landscape. Our team managing our leading range of interconnect and sensor products continues to position the company strongly for the future.
The Commercial Aerospace market represented 2% of our sales in the quarter. Sales grew a very strong 36% versus prior year and 42% organically driven by broad-based strength across all aircraft applications. Compared to the second quarter, our sales just -- declined just a slight 1%, which was actually better than our expectation coming into the quarter. As we look to the fourth quarter, we expect a modest decline in sales versus the third quarter levels, but for the full-year 2022, we expect sales to increase a very strong 30% compared to prior year.
Our team has justifiably proud to have now realized four consecutive quarters of strong growth in the commercial air market, a clear sign of their resilience and of the continued recovery in the global air travel industry. Going forward, we look forward to benefiting from the company's strong interconnect and sensor technology positions across a wide array of aircraft platforms and next-generation systems being integrated into those airplanes.
The industrial market represented 25% of our sales in the third quarter. Sales increased by 11% in U.S. dollars and 13% organically. Our growth was broad-based across most segments of the worldwide industrial market including battery and heavy electric vehicle, factory automation, alternative energy, heavy equipment, medical, oil and gas and building automation. Sequentially, our sales actually increased by 2% from the second quarter which was a bit better than our expectations coming into the quarter.
Looking to the fourth quarter, we expect a modest sequential sales decline and for the full-year 2022, we expect a mid-teens increase in sales from prior year. Our results in the industrial market this quarter confirm once again that our outstanding global team working in this important market continues to find new opportunities for growth across the many segments of the exciting industrial electronics market. I remain confident that our long-term strategy to expand our high-technology interconnect, antenna and sensor offering both organically and through complementary acquisitions has positioned us well to capitalize on the many technology revolutions happening across the industrial market. To that end, the addition of ICA further strengthens our position across a number of exciting segments within this important end-market and we look forward to realizing the benefits of the strategy for many years to come.
The Automotive market represented 20% of our sales in the quarter and sales in the third quarter grew by a very strong 27% in U.S. dollars and 37% organically, driven by broad-based strength across most automotive applications and particularly strong growth once again in sales to electric and hybrid electric vehicle applications. Sequentially, our sales increased by 4% from the second quarter, which was much better than our expectations. For the fourth quarter, we expect sales to remain roughly at these levels and for the full-year 2022, we expect sales to increase by approximately 20% compared to last year, driven by expanded position in next-generation electronics and electrical systems being integrated into cars. I remain extremely proud of our team working in the automotive market. They continue to manage well through a challenging overall environment, all while remaining focused on driving new design wins with customers who are implementing a wide array of new technologies into their vehicles. Our continued outperformance is a direct result of their excellent efforts.
The Mobile Devices market represented 12% of our sales in the quarter and our sales to customers in this market increased by 13% in U.S. dollars and 15% organically, and this was driven by strong growth in sales of products incorporated into smartphones, wearables and laptops. Sequentially, our sales increased by much stronger-than-expected 43% driven by higher sales across virtually all product categories that we serve. As we've seen periodically in the past, we do believe that some small portion of this robust demand in the third quarter may have been pulled forward from the fourth quarter. Accordingly, we expect a low-double digit sequential decline in sales from the strong third quarter levels.
For the full-year, we anticipate sales to grow modestly from our strong 2021. I'm very proud of our team working in the mobile devices market, as they continue to execute strongly in the face of an ever dynamic demand for our leading array of antennas, interconnect products and mechanisms that are integrated into a wide range of next-generation mobile devices. And no question that this team remains poised as always to capture any opportunities for incremental sales that may arise here in 2022 or beyond.
The Mobile Networks market represented 5% of our sales in the quarter and sales increased by a strong 19% versus prior year and 15% organically, as growth in our sales to mobile service providers was only partially offset by a moderation of sales to equipment manufacturers. On a sequential basis, our sales increased by 9%, which was better than our expectations. For the fourth quarter, we expect a low-double digit sequential sales reduction after a very strong third quarter. And for the full-year 2022, sales are expected to grow in the high-single digits. We're encouraged by our strengthening performance in the mobile networks market. As operators continue to ramp up their investments in next-generation systems, our team remains focused on realizing the benefits of our long-term efforts to expand our position in next-generation 5G equipment and networks around the world.
The Information Technology and Data Communications market represented 22% of our sales in the quarter. Sales in the third quarter rose from prior year by 16% in U.S. dollars and a 11% organically. This was driven by increased demand for products in servers and networking applications and that was only partially offset by some declines in storage-related products. Sequentially, our sales did decline by 3%, albeit, better than our expectation coming into the quarter. We believe that this begins to reflect some of the expected inventory corrections that we've discussed in the past by our IT datacom customers.
As we look towards the fourth quarter, we expect a low-double digit decline in sales from these third quarter levels, as customers continue to moderate their demand and adjust their inventory levels. For the full-year 2022, however, we expect very strong high-teens sales growth compared to prior year. We remain encouraged by the company's outstanding position in the global IT datacom market. Our team has done just an outstanding job developing leading high-speed, power and fiber-optic interconnect products that are enabling our OEM and web service provider customers, who continue to drive their equipment and networks towards ever higher levels of performance. We look forward to realizing the benefits of that leading position in this important market for many years to come.
And finally the Broadband market represented 5% of our sales in the third quarter. Sales in this market increased by a very robust 65% in U.S. dollars and 46% organic, as we experienced strong demand from cable operators for a wide range of our products. On a sequential basis, sales increased by 2%, which was better than our expectation coming into the third quarter. Looking towards the fourth quarter, we expect sales to increase moderately from these strong third quarter levels. And for the full-year 2022, we expect sales to increase by more than 50% from prior year and that includes both robust organic growth as well as the benefit of acquisitions.
We look forward to continuing to support our broadband service provider customers around the world with our expanded range of high-technology products. These products have become even more critical as our customers increase the bandwidth and capacity of their networks to support the expansion of high-speed data applications to homes and businesses. And this is in certain cases, in furtherance of government-funded programs to expand broadband.
Now, turning to our outlook, there's no doubt that the current economic environment remains highly uncertain and increasingly dynamic, assuming market conditions do not meaningfully worse and then also assuming constant exchange rates. For the fourth quarter, we expect sales in the range of $3,090 million to $3,150 million and adjusted diluted earnings per share in the range of $0.73 to $0.75. This would represent sales growth of 2% to 4% and adjusted diluted EPS growth of 4% to 7% versus the fourth quarter of 2021.
Our fourth quarter guidance represents also an expectation for full-year sales of $12,474 million to $12,534 million and full-year adjusted diluted EPS of $2.95 to $2.97. This outlook would represent full-year sales and adjusted EPS growth of 15% and 19% to 20% respectively. I remain confident in the ability of our outstanding management team to adapt to the many opportunities and challenges in the current dynamic environment and to continue to grow our market position, while driving strong profitability.
In addition, I just have to say that the entire Amphenol team around the world remains committed to delivering long-term sustainable value. And I'd be remiss if I did not take this opportunity here to thank each and every one of our Amphenolian team members around the world for their truly outstanding efforts here in the third quarter.
And with that operator, we'd be very happy to take any questions.