Despite some broad-based macro challenges, we delivered GAAP earnings per share growth of 9%, operating margin of 23.7% and after-tax return on invested capital of 28.9% in the quarter.
As a result, despite revenues that were down $700 million or 4.5% year-on-year, we delivered record GAAP earnings per share of $7.74, expanded operating margin to 24.4% excluding higher restructuring expenses and group free cash flow by 9%.
In addition, we were able to raise our dividend by 7% and returned $2.8 billion to shareholders in the form of dividends and share repurchases.
Last year, we invested more than $600 million to support the execution of our strategy and further enhanced the growth and profitability performance of our core businesses.
In the fourth quarter, organic revenue declined 1.6% year-over-year in what remains a pretty challenging demand environment.
The strike at GM reduced our enterprise organic growth rate by approximately 50 basis points and Product Line Simplification was 60 basis points in the quarter.
By geography, North America was down 2% and international was down 1%.
Europe declined 1%, while Asia Pacific was flat.
Organic growth in China was broad-based across our portfolio and up 7% year-over-year.
Operating margin was 23.7%, including 40 basis points of unfavorable margin impact from higher restructuring expenses year-over-year.
Excluding those higher expenses, operating margin was up 10 basis points to 24.1%.
Enterprise initiatives contributed 130 basis points and price/cost was positive 30 basis points.
GAAP earnings per share was up 9% to $1.99 and included an $0.11 gain from three divestitures and $0.06 headwind from higher restructuring expenses year-over-year and foreign currency translation impact.
The effective tax rate in the quarter was 22.8%.
Free cash flow was 114% of net income.
And as planned, we repurchased $375 million of our own shares during the quarter.
Overall, operating margin of 23.7% was down 30 basis points year-over-year, primarily due to higher restructuring expense.
Excluding those higher restructuring expenses, margin improved 10 basis points despite a 3% decline in revenues.
Enterprise initiatives were once again the highlight and key driver of our margin performance, contributing 130 basis points, the highest levels since the fourth quarter of 2017.
The enterprise initiative impact continues to be broad-based across all seven segments, ranging from 80 basis points to 200 basis points.
The majority of these restructuring projects are supporting enterprise initiative implementation, specifically our 80-20 front-to-back execution.
Price remained solid with price well ahead of raw material costs and price/cost contributed 30 basis points in the quarter.
Volume leverage was negative 30 basis points.
As raw material cost in the aggregate have declined over the course of the year, the annual mark-to-market adjustments to the value of our inventory that we do every fourth quarter, this year had an unfavorable impact of 30 basis points versus last year.
We also had a favorable item last year that didn't repeat this year for 40 basis points.
And finally, the other category, which includes typical wage and salary inflation was 50 basis points.
At the enterprise level, the organic growth rate swung from positive 2% in 2018 to down 2% in 2019 with the biggest year-on-year swings in our capex-related equipment offerings and automotive.
Organic revenue was down 5% as the GM strike reduced revenues by approximately two percentage points.
Taking a closer look at regional performance, North America was in line with D3 builds, down 13%, Europe was essentially flat versus builds that were down 6% and China organic growth was 11% compared to builds, up one.
Moving on to Slide 6, Food Equipment had a good quarter with organic growth up 2% year-over-year despite a tough comp of 5% organic growth last year.
The service business was solid, up 4% in the quarter.
Equipment growth of 1% reflects double-digit growth in retail and modest decline in institutional and restaurants, against tough year-over-year comps for both of those.
Operating margin expanded 90 basis points to 27.5% with enterprise initiatives the main contributor.
Test & Measurement and Electronics had a very strong quarter with Test & Measurement up 6% with 13% growth in our Instron business.
Electronics was up 2%.
Margin was the highlight as the team expanded operating margin 330 basis points to a record 28.1%, the highest in the company this quarter with strong contributions from enterprise initiatives and volume leverage.
Also in the quarter, we divested Electronics business with 2019 revenues of approximately $60 million.
Welding organic revenue declined 4% against a tough comparison of 8% growth last year.
North America equipment was down 3% against a tough comparison of up 7% last year.
Oil and gas was down 2%.
Operating margin was 25.4%, down 150 basis points, primarily due to higher restructuring expenses.
In the quarter, we divested an installation business with 2019 revenues of approximately $60 million, which reduced Welding's organic -- which overall growth rate by 150 basis points in the quarter.
Polymers & Fluids' organic growth was down 2% versus a tough comp of plus 4% last year.
Polymers was flat, Automotive aftermarket was down 1%, Fluids was down 6%.
Operating margin was strong, up 150 basis points, driven primarily by enterprise initiatives.
Construction organic revenue was down 1% with continued softness in Australia/New Zealand, which was down 4%.
Europe was down 3% with the U.K. down 14%.
North America was up 2% with residential remodel up 2% and commercial up 5%.
Operating margin was 22.2% down due to the inventory mark-to-market adjustments and higher restructuring expenses.
In Specialty, organic revenue was down 3%, which on a positive note, is an improvement from the past couple of quarters.
Excluding these potential divestitures, core organic growth was down 1.7%.
By geography, North America was down 4% and international 3%.
We also divested a business in this segment with 2019 revenues of approximately $15 million.
In a challenging industrial demand environment, organic revenue was down 1.9% with total revenues down 4.5% as foreign currency translation impact reduced revenues by 2.3% and divestitures by 30 basis points.
GAAP earnings per share was $7.74 and included $0.09 of divestiture gains, as well as $0.32 of headwinds from foreign currency and higher restructuring expenses year-over-year.
Operating margin was 24.1% -- 24.4% excluding higher year-on-year restructuring expense as enterprise initiatives contributed 120 basis points.
After-tax return on invested capital improved 50 basis points to 28.7%.
Our cash performance was very strong with free cash flow up 9% and a conversion rate of 106% of net income.
We made significant internal investments to grow and support our highly profitable businesses, increased our annual dividend by 7% and utilized our share repurchase program to return surplus capital to our shareholders.
As a reminder, we're looking to potentially divest certain businesses with revenues totaling up to $1 billion and are targeted to complete the effort by year-end 2020.
The strategic objective with this phase of our portfolio management effort is to improve our overall organic growth rate by 50 basis points and improve margins by approximately 100 basis points.
In the fourth quarter, we completed the sale of three businesses with combined 2019 revenues of approximately $135 million, generating a pre-tax gain on sale of $50 million or $0.11 a share.
In 2019, these businesses were a 20 basis points drag to our organic growth rate and 10 basis points to our margin rate.
As you know, full potential steady state PLS is expected to be about 30 basis points.
First, we expect GAAP earnings per share in the range of $7.65 to $8.05 for 2020.
Using current levels of demand adjusted for seasonality, organic growth at the enterprise level is forecast to be in the range of 0% to 2% for the year.
PLS impact is expected to be approximately 50 basis points.
We expect to expand operating margin from 24.1% in 2019 to a range of 24.5% to 25% in 2020 with enterprise initiatives contributing approximately 100 basis points.
After-tax ROIC should improve to a range of 29% to 30%.
We have allocated $2 billion to share repurchases with core share repurchases of $1.5 billion, an additional $500 million to offset the earnings per share dilution from the three completed divestitures.
Additional items include an expected tax rate in the range of 23.5% to 24.5%, which represents a 10% -- $0.10 earnings per share headwind and foreign currency at today's rates is also unfavorable $0.10 of EPS.

Summary:
In the fourth quarter, organic revenue declined 1.6% year-over-year in what remains a pretty challenging demand environment.
By geography, North America was down 2% and international was down 1%.
GAAP earnings per share was up 9% to $1.99 and included an $0.11 gain from three divestitures and $0.06 headwind from higher restructuring expenses year-over-year and foreign currency translation impact.
At the enterprise level, the organic growth rate swung from positive 2% in 2018 to down 2% in 2019 with the biggest year-on-year swings in our capex-related equipment offerings and automotive.
Moving on to Slide 6, Food Equipment had a good quarter with organic growth up 2% year-over-year despite a tough comp of 5% organic growth last year.
Electronics was up 2%.
Oil and gas was down 2%.
Polymers & Fluids' organic growth was down 2% versus a tough comp of plus 4% last year.
North America was up 2% with residential remodel up 2% and commercial up 5%.
First, we expect GAAP earnings per share in the range of $7.65 to $8.05 for 2020.
Using current levels of demand adjusted for seasonality, organic growth at the enterprise level is forecast to be in the range of 0% to 2% for the year.
We have allocated $2 billion to share repurchases with core share repurchases of $1.5 billion, an additional $500 million to offset the earnings per share dilution from the three completed divestitures.