Emerson 2008 Annual Report Download - page 4

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Emerson delivered outstanding results in 2008,
despite a challenging global economic environ-
ment. Our operating team executed well across
the board, identifying and solving important
problems for global customers, creating
rewarding opportunities for employees and
delivering strong results for shareholders. I am
very proud of the Emerson team and what
we accomplished.
Net sales reached a record $24.8 billion.
Reported sales grew by 12 percent and
underlying sales (which exclude the impact
of acquisitions, divestitures and foreign
currency translation) grew 7 percent, in line
with our goal to deliver 5–7 percent underlying
sales growth through long-term business cycles.
Our ability to apply disciplined processes and
industry expertise across cultures is key to
Emerson’s success. Sales outside of the United
States continue to represent an increasingly
larger share of total sales, 54 percent in 2008,
which gives a more balanced business prole.
Earnings per share (EPS) rose to $3.06, another
record and an increase of 15 percent over scal
2007. The operating prot margin increased
70 basis points to 16.5 percent – the highest
level in more than 30 years. On top of that, the
company delivered 22 percent after-tax return
on total capital and generated $3.3 billion
in operating cash. Generating signicant
d a v i d n. f a r r
C h A i R m A n ,C h i e f e x e C u t i v e o f f i C e R , 
A n d p R e s i d e n t
Dear Shareholders,
[ 02 ] Emerson 2008