Eme r s on 2013 Ann u al R e por t 25 other costs and an 8 million unfavorable impact from foreign currency transactions Savings from cost reduction actions and lower rationalization expense of 28 million partially offset the decline Materials cost containment offset the unfavorable impact of lower prices In July the company agreed to sell a controlling interest in embedded computing and power See Goodwill Impairment in this discussion and Note 3 2012 vs 2011 Sales for Network Power were 64 billion in 2012 a 412 million decrease refecting protracted weakness in telecommunications and information technology end markets and product rationalization in the embedded computing and power business A modest sales decrease in the network power systems business refected weak demand in Europe and North America uninterruptible power supplies data center infrastructure management products and North America telecommunicationsrelated DC power systems This decrease was partially offset by strong growth in Asia including the National Broadband Network contract in Australia and modest growth in Latin America Total sales decreased 6 percent refecting an underlying sales decrease of 5 percent on lower volume and a 1 percent 83 million unfavorable impact from foreign currency translation while the Avtron acquisition had a 27 million favorable impact Geographically underlying sales decreased 10 percent in both the United States and Europe and 2 percent in Latin America while sales increased 2 percent in Asia down 4 percent in China and 5 percent in Canada Earnings of 624 million decreased 132 million and margin decreased 14 percentage points primarily due to lower volume and resulting deleverage particularly in the embedded computing and power business partially offset by cost reductions and materials cost containment Segment margin was also affected by higher laborrelated costs unfavorable product mix higher rationalization expense of 33 million and a 10 million unfavorable impact from foreign currency transactions Additionally Chloride acquisitionrelated costs were 24 million in 2011 C l IM ate te CH n O l OGI e S change change dollars in millions 2011 2012 2013 11 12 12 13 Sales 3995 3766 3876 6 3 Earnings 709 668 716 6 7 Margin 178 177 185 2013 vs 2012 Sales for Climate Technologies were 39 billion in 2013 an increase of 110 million or 3 percent primarily led by moderate growth in the compressors business worldwide The temperature controls and temperature sensors businesses were up slightly The increase in compressor sales was driven by solid growth in global air conditioning while refrigeration sales declined slightly Underlying segment sales increased 3 percent on volume growth Foreign currency had a 1 million unfavorable impact Underlying sales increased in nearly all geographies with the United States up 2 percent Asia up 5 percent Europe up 2 percent and Latin America up 2 percent Sales decreased 1 percent in Canada Earnings increased 48 million on higher volume in the compressors business material cost containment and savings from cost reduction actions Margin increased 08 percentage points on savings from cost reduction actions materials cost containment and lower rationalization expense of 8 million partially offset by unfavorable product mix 2012 vs 2011 Climate Technologies sales decreased 229 million in 2012 to 38 billion Sales decreased in the air conditioning temperature controls and temperature sensors businesses as global softness in residential markets and overall weakness in Europe adversely affected results Air conditioning sales decreased in North America China and Europe slightly offset by growth in the rest of Asia excluding China Refrigeration sales were down signifcantly in Europe and Asia partially offset by slight growth in the US Underlying sales decreased 5 percent including 7 percent lower volume slightly offset by approximately 2 percent from price Foreign currency had a 1 percent 42 million unfavorable impact and the marine controls acquisition had a negligible contribution 21 million Underlying sales decreased 4 percent in the United States 10 percent in Asia down 18 percent in China and 9 percent in Europe while sales increased 14 percent in Latin America and 3 percent in Canada Earnings decreased 41 million on lower volume while margin was essentially fat as the impact of deleverage was minimized through savings from cost reduction actions and lower warranty costs Price actions were offset by higher materials and other costs C OMM e RCI al Re SI dent I al S O lut IO n S change change dollars in millions 2011 2012 2013 11 12 12 13 Sales 1837 1877 1865 2 1 Earnings 375 396 404 6 2 Margin 204 211 217 2013 vs 2012 Commercial Residential Solutions sales were 19 billion in 2013 a decrease of 12 million or 1 percent including a negative 4 percent 76 million comparative impact from the Knaack storage business divestiture in 2012 Underlying sales grew 3 percent 64 million from higher volume The sales increase was led by strong growth in the food waste disposers business and modest growth in the storage and professional tools