Emerson 2010 Annual Report Download - page 9

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2010 Annual Report
7
put the deep global recession behind us. Our
operating margin improved significantly in
fiscal 2010, reaching 16.7 percent, driven by
our aggressive global restructuring programs
and improved business mix.
Emerson’s after-tax return on total capital
(ROTC) was 18.9 percent, up from 16.2 percent
in fiscal 2009. This is an important metric, as it
measures our ability to create long-term value
and deliver good returns for our shareholders.
We continue to target consistent ROTC
performance in the range of 15 to 25 percent.
Cash flow from operations in fiscal 2010 was
$3.3 billion, essentially matching our record
level in 2008. We are very pleased with this
outcome as it gives us the freedom to invest
for growth and return funds to shareholders.
Generating free cash flow is among our highest
priorities. Strong cash flow allows the company
to determine its own destiny, to pursue value-
creating acquisitions, to make internal capital
investments for new products and technology,
and to return cash to shareholders through
dividends and stock repurchases. Strong cash
flow performance represents our absolute
commitment to capital efficiency and driving
long-term value for our shareholders.
Fiscal 2010 marked Emerson’s 54th consecutive
annual dividend increase. The board of directors
acted on November 2, 2010, to further increase
the dividend by 3.0 percent, to an annual rate
of $1.38.
$4 Billion
of Strategic Acquisitions Completed
Over the Last Two Years