Emerson 2011 Annual Report Download - page 57

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RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (dollars in millions)
2011 2012E
Underlying sales (non-GAAP) 11% ~5-7 %
Foreign currency translation 2% ~(1)%
Acquisitions 2%
Net sales 15% ~4-6 %
Operating profit (non-GAAP) $4,229
Operating profit margin % (non-GAAP) 17.5% ~18 %
Interest expense and other deductions, net 598 ~2.5 %
Pretax earnings $3,631
Pretax earnings margin % 15.0% ~15.5 %
COMPARISON OF FIVE-YEAR
CUMULATIVE SHAREHOLDER RETURN
SEPT SEPT SEPT SEPT SEPT SEPT
2006 2007 2008 2009 2010 2011 CAGR
Emerson 100 130 102 104 141 113 2.5 %
S&P 500 Index 100 116 91 85 93 94 (1.2)%
Dow Jones
US Electrical
Components
& Equipment Index 100 119 89 92 106 100 0.0 %
$100 invested on 9/30/06 in stock or index, including reinvestment of
dividends. Fiscal year ending September 30.
Copyright© 2011 Standard & Poor’s, a division of The McGraw-Hill
Companies Inc. All rights reserved. (www.researchdatagroup.com/
standards-poors)
Copyright© 2011 Dow Jones & Company. All rights reserved.
SAFE HARBOR STATEMENT
This Annual Report contains various forward-looking
statements and includes assumptions concerning
Emerson’s operations, future results and prospects.
These forward-looking statements are based on current
expectations, are subject to risk and uncertainties, and
Emerson undertakes no obligation to update any such
statements to reflect later developments. In connection
with the “safe harbor” provisions of the Private Securi-
ties Litigation Reform Act of 1995, Emerson provides the
following cautionary statement identifying important
economic, political and technological factors, among
others, changes in which could cause the actual results
or events to differ materially from those set forth in or
implied by the forward-looking statements and related
assumptions.
Such factors include, but are not limited to, the following:
(i) current and future business environment, including
interest rates, currency exchange rates and capital and
consumer spending; (ii) potential volatility of the end
markets served; (iii) competitive factors and competitor
responses to Emerson initiatives; (iv) development and
market introduction of anticipated new products; (v)
availability of raw materials and purchased components;
(vi) U.S. and foreign government laws and regula-
tions, including taxes and restrictions; (vii) outcome of
pending and future litigation, including environmental
compliance; (viii) stability of governments and business
conditions in foreign countries, including emerging econ-
omies, which could result in nationalization of facilities
or disruption of operations; (ix) penetration of emerging
economies; (x) favorable environment for acquisitions,
domestic and foreign, including regulatory requirements
and market values of candidates; (xi) integration of acqui-
sitions; (xii) favorable access to capital markets; and (xiii)
execution of cost-reduction efforts.
; Emerson; Emerson Network Power; Emerson
Industrial Automation; Emerson Process Management; Emerson
Climate Technologies; Emerson Tools and Storage; Avocent; Chloride;
Trellis; and their related designs and logotypes are trademarks, service
marks and/or trade names of Emerson, its subsidiaries, affiliates,
investments or joint ventures.
© Emerson Electric Co. 2011. All Rights Reserved
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