Emerson 2011 Annual Report Download - page 11

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Annual Report | 09
n Underlying sales growth of 5 to 7 percent
through the cycle
n Operating margin of 15 to 19+ percent
through the cycle
n Free cash flow of 10 to 14 percent of sales
n Return on total capital of 15 to 25 percent
My forward-looking view of the business environ-
ment is not as optimistic as it was at this time a year
ago. Globally, some economies look stronger than
others, but we expect positive growth in the year
ahead. Businesses are being managed for the long-
term and many customers are maintaining strong
cash positions and protecting their balance sheets.
Despite this caution and uncertainty, 2012 should be
another very good year at Emerson, with continued
growth and solid financial performance in tough and
uncertain global economic conditions. Emerson is
well-positioned for this type of challenging business
environment – we are ready.
In 2012 we expect underlying sales to increase in the
5 to 7 percent range. Our profitability should be solid
as we target 18 percent operating margins, and we
expect earnings per share growth of 8 to 12 percent
based on our anticipated underlying sales growth.
We will continue to efficiently restructure and
reposition the company, as we identify value-
Frank J. Dellaquila
Senior Vice President and
Chief Financial Officer
Return on Total Capital
07
20.1%
11100908
21.8%
16.2%
18.9% 19.6%