Emerson 2014 Annual Report Download - page 8

Celebrate. Challenge. Consider It Solved.
Excluding charges, earnings per share increased
6 percent to $3.75, a solid performance given the
modest global growth environment.
Emerson continued to generate robust cash flow,
reflecting the quality of our portfolio, continued
investment in our businesses and our commitment
to execution. Of the $3.7 billion in operating cash
flow, 61 percent was returned to shareholders
through dividends and share repurchase, the fourth
consecutive year exceeding a 60 percent payout. This
capital allocation performance demonstrates our focus
on generating sustainable returns for shareholders,
which is further evidenced by another milestone: the
completion of our 58th consecutive year of dividend
increases. In November, the Board of Directors
increased the first quarter dividend by 9 percent to
an annual rate of $1.88.
Emerson’s foresight and willingness during the past
125 years to adapt and remake itself to meet the
changing needs of customers, markets and investors
are remarkable. The ability to change, restructure
and reposition have long been fundamental to our
ongoing business success. Responding intelligently,
strategically and quickly to change, and in many cases
initiating it, continues to be essential to maintaining
our industry leadership.
Our perseverance and longevity are rooted in a culture
of innovation, leadership, discipline, execution and
long-term planning. These principles have guided
us through periods of transition, disruptions and
growth since our beginning. They compel us to
invest when times are tough in order to ensure we
protect our global franchises and better position the
company for the future. As we have grown over time,
the commitment to our foundational management
process has been continuously renewed as we have
seen its benefits allow each generation of Emerson
leaders to strengthen the company through an
intense focus on creating long-term shareholder value.
This mindset drove the strategic decision this past year
to look beyond the uncertain economic environment,
and to pivot toward accelerating internal investments
to drive higher levels of growth. As we shared at our
annual investor conference in February, moving into
2014 we recognized an unprecedented number of
long-term growth opportunities. Consistent with our
determination to look ahead to future value creation
and resist the temptation to think short term when the
environment is challenging, we aggressively pursued
growth initiatives focused on global penetration,
technology development, customer engagement and
transformative innovation. We made great strides
toward implementation of key strategic programs,
enhancing our position to create value in the near term
and far beyond.
A rigorous focus on creating and sustaining value
for our shareholders, customers, employees and
communities – regardless of economic trends – has
always been at the core of how we operate. As we
have continued to build upon our technology position
and lead our served industries, our customers have
increasingly relied on us to solve their most difficult
challenges. The following pages of our annual report
provide a glimpse into a few of these complex
challenges. But make no mistake, there are countless
examples of our Consider It Solved commitment to
our customers that define us and underscore what
inspires us. And as we help our customers succeed,
with a dedication to execution and superior quality,
our shareholders are rewarded as well, as reflected in
robust returns decade after decade. Strong alignment
between our culture and our commitment to our
customers, shareholders and employees has been –
and will continue to be – fundamental to our success.
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