Operating income for the Industrial Materials segment was $49 million in the fourth quarter of 2011 as compared to $31 million in the fourth quarter of 2010 excluding pension related charges *.
Engineered Solutions Segment
Net sales for the Engineered Solutions segment were $51 million in the fourth quarter of 2011 as compared to $47 million in the fourth quarter of 2010. Operating income was $4 million in the fourth quarter of 2011 as compared to $6 million in the fourth quarter of 2010 excluding the pension related charges
. The decrease in operating income was primarily due to a decline in the solar market demand and the economic slowdown in Europe.
Total company selling and administrative and research and development expenses were $52 million for the fourth quarter of 2011. This compares to overhead expense for the same time period last year of $38 million. The year-over-year increase was driven by $9 million of the pension related charges with the remainder of the increase primarily driven by the previously existing overhead and the amortization of intangible assets acquired from our acquisitions.
The International Monetary Fund (IMF) in its latest report dated January 24, 2012, projected world output to expand by approximately 3.25 percent in 2012. This projection represents the second time since June 2011 they have reduced their numbers as the global recovery continues to move at a slower pace. The IMF highlighted that downside risks have intensified globally over the past few months. Additionally, they are now projecting a mild recession in Europe as a result of the continued European debt crisis. Also noting the slowdown in Europe, The European Steel Association’s February 3, 2012 report stated that they expect recessionary conditions to continue throughout 2012.