We have decided to better our communication with you. We are going to talk to you about how we are moving OMG to the other end of the supply channel and closer to end markets. We will discuss how are margins are improving because we are getting rewarded for technology and innovation. We would demonstrate how we are gaining control over our destiny by participating in growth around the world. And you will see that higher profits and more stable earnings will be the result of our efforts. You can follow our presentation in the slide that we published this morning.
So let’s get started and I would like to refer you to slide 3 in your deck. 2011 was a great year for the OM Group. We achieved outstanding financial results, highlighted by revenue growth of 27% and adjusted EPS increasing 34%. This growth was driven primarily by our mid-year acquisition of VAC. If you look at the full year on a pro forma basis, revenue was $1.9 billion or an increase of almost 60%. We were once again able to generate positive cash flow from operations. 2011 marked the 6th consecutive year in which we are able to do this. Our ability to generate cash has been a consistent strength of our model and affords us the opportunity to invest in growth. In addition to the outstanding financial performance, we also delivered on our transformation objectives by creating the Magnetic Technologies platform.
With the (Audio Gap) VAC we are now exposed to additional downstream markets all over the world. VAC enables us to simultaneously meet several key objectives. First, VAC is a global leader in developing materials and technologies, utilizing high quality alloys with advanced magnetic properties. This expands OMG’s downstream presence, converting raw materials into specialized products to meet specific market needs. Second, the business provides access to broader global markets, with favorable long-term trends. These markets include automotive, renewable energy, electrical infrastructure, and industrial automation. With over 700 patents and clear technological leadership, VAC has the ability to develop new products targeted directly at growth trends in every part of the world. There is no doubt in my mind that that positions OM Group for profitable growth.
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