Eme r s on 2013 Ann u al R e por t 23 n et e a R n I n GS and e a R n I n GS Pe R S H a R e Retu R n S O n e qu I t Y and tO tal Ca PI tal Net earnings attributable to common stockholders in 2013 were 20 billion up 2 percent versus prior year and diluted earnings per share were 276 up 3 percent refecting the operating results discussed previously The increase in earnings per share also refects the purchase of treasury shares Goodwill impairment and income tax charges were 38 million and 006 per share higher than in 2012 and reduced earnings and earnings per share growth 1 percentage point Net earnings attributable to common stockholders in 2012 were 20 billion and earnings per share were 267 down 21 percent and 18 percent respectively versus 2011 Net earnings and earnings per share for 2012 were reduced 21 percent by the goodwill impairment charges Return on common stockholders equity net earnings attributable to common stockholders divided by average common stockholders equity was 192 percent in 2013 compared with 190 percent in 2012 and 246 percent in 2011 Return on total capital was 164 percent in 2013 compared with 158 percent in 2012 and 196 percent in 2011 and is computed as net earnings attributable to common stockholders excluding aftertax net interest expense divided by average common stockholders equity plus short and longterm debt less cash and shortterm investments Goodwill impairments and income tax charges reduced 2013 and 2012 return on common stockholders equity 36 and 45 percentage points respectively and return on total capital 32 and 36 percentage points respectively Business Segments Following is an analysis of segment results for 2013 compared with 2012 and 2012 compared with 2011 The Company defnes segment earnings as earnings before interest and income taxes P ROC e SS Mana G e M ent change change dollars in millions 2011 2012 2013 11 12 12 13 Sales 7000 7899 8610 13 9 Earnings 1402 1599 1809 14 13 Margin 200 202 210 2013 vs 2012 Process Management reported sales of 86 billion in 2013 an increase of 711 million or 9 percent on strong growth in the measurement devices fnal control and systems and solutions businesses refecting continued global oil and gas investment and demand in chemical and power end markets Underlying sales increased 9 percent on volume while foreign currency translation had a 23 million unfavorable impact Underlying sales growth was modest in the United States up 3 percent while growth was strong internationally Asia was up 12 percent Europe up 7 percent Latin America up 22 percent Middle EastAfrica up 19 percent and Canada up 10 percent Earnings increased 210 million and margin expanded 08 percentage points on higher volume leverage and lower materials costs partially offset by higher other costs Benefts from cost reductions were offset by unfavorable product mix Foreign currency transactions were 23 million favorable compared to prior year The comparison for 2013 includes incremental costs incurred in the prior year related to Thailand fooding recovery 2012 vs 2011 Process Management sales increased 899 million to 79 billion as all businesses reported higher sales Strong growth in the measurement devices fnal control and systems and solutions businesses was driven by solid global oil and gas investment and demand in the chemical and power end markets The supply chain disruption from Thailand fooding that adversely affected results of several businesses in the frst half of the year was resolved and nearly all of the volume was recovered in the second half Underlying sales increased 15 percent on volume growth while foreign currency translation had a 2 percent 135 million unfavorable impact Geographically underlying sales increased in all regions including 18 percent in the United States 13 percent in Asia 9 percent in Europe 28 percent in Latin America 16 percent in Middle EastAfrica and 14 percent in Canada Earnings increased 197 million to 1599 million on higher volume and leverage Margin increased slightly as benefts from volume leverage and cost reduction actions were partially offset by approximately 30 million of incremental costs related to Thailand fooding a 44 million unfavorable impact from foreign currency transactions and higher wages and other costs net ea R n I n GS P e R SH a R e Excludes goodwill impairment charges of 078 per share in 2013 072 per share in 2012 and 003 per share in 2011 227 09 13 12 11 10 284 330 339 354 4 I n CR e a S e ne t e a R n I n G S P e R S H a R e 13 12 11 327 267 276