Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Robert Felice – Gabelli & Company.
Robert Felice - Gabelli & Company
I guess first, as we look to next year, how should we think about balancing the annualized impact of demand shaping initiatives, the higher performance trend standards that will likely result in decreased volumes with other organic growth initiatives, like the expansion in distribution.
John K. Morgan
Let me give you just a general overview of my thoughts about that and I will ask Mark to provide any specifics that you might need.
We don’t see any reason at this point in time to change our thinking about our long-term objectives for the business. You know we describe those in terms of annual improvement objectives over the long term for the business, specifically in the area of growing at rates exceeding the market and maintaining return on invested capital at 15% or greater and earnings per share increases in the 11% to 13% range.
And we are pleased that we were able to outstrip some of that this year but we think that with all the various different moving parts, including our reinvestment back into the business that we are affording ourselves from some of those improvements, that those are still viable long-term objectives described on an annual basis.
Mark, do you have anything more specific than that?
Mark R. Bachmann
Not really, John. As you said, we would expect that the distribution business would build throughout the year, as we’re just entering into those agreements this year.
Robert Felice - Gabelli & Company
As we roll up all the pieces, should we expect organic growth over and above what you showed this year, as some of these initiatives get underway, or do you think as we balance the annualized impact of the demand shaping that it will come a little below this past year?
John K. Morgan
I really think for the immediate future you wouldn’t expect organic growth to accelerate as a result of these initiatives. What we’re obviously betting on is that organic growth over time will accelerate as we invest in these other initiatives, especially the distributor model as well as now releasing our businesses, if you will, in our I&I model to get back into the business of adding rep head count, where they can bring reps in that are more experienced than was our previous model.
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