During the course of this presentation and in responses to your questions, you will hear certain forward-looking statements. Our actual results may differ materially. Please read our commentary on forward-looking statements in Slide #2 of our supporting materials or at the end of our news release or the statements in our quarterly and annual SEC filings.In addition, our discussion includes certain non-GAAP financial measurements as defined under SEC rules. We have provided a reconciliation of those non-GAAP financial measures to the most directly comparable GAAP measure at the end of our press release. A copy of our press release is available on our Investor Relations website. Now, let me turn over the call to Shane. Shane D. Fleming Thank you, Jodi, and good morning, everyone. I appreciate you taking the time to join our fourth quarter earnings call. I'm very pleased with our finish to 2011, and the momentum we built going into 2012. I'll begin on Slide 3. Overall sales in the quarter was $731 million, a 4% increase over the prior-year quarter. The year-on-year sales growth was driven by 3% selling price increases across all of our business segments. I continue to be pleased with our pricing execution particularly given the softening demand environment. In the quarter, we delivered $48 million in price versus $33 million in raw material increases. And year-to-date, the company achieved approximately $217 million in price, more than offsetting cost increases. Volumes versus the prior-year quarter were down by 2%, attributable primarily to volume declines in Coating Resins and to a lesser degree, in Additives Technologies. This was largely offset by strong volume growth in the Engineered Materials and In Process Separation segments, which I will describe in more detail in the following slides. Net earnings from operations in the fourth quarter this year were $40.3 million, or $0.86 per diluted share, excluding the special items that Dave will explain. This represents a 25% improvement over the prior-year quarter's EPS and a clear indication of our progress to leverage sales growth and a stronger earnings for the company.
Moving on to the business segment details. Slide 4 highlights results for In Process Separation segment, which delivered sales of $90 million on the fourth quarter, a 10% increase versus the fourth quarter 2010. Selling volumes increased by 3% as a result of continued strong production rates in our primary copper and aluminum-based metal markets. Additionally, the Commercial and Technology teams continue to do a great job commercializing new technologies which have led to both volume growth and improved product mix.We have also been successful in our penetration of new geographies and in the quarter, secured new business in Latin America and Russia. Selling prices in the quarter were increased by 7% and more than covered cost escalation. The segment delivered $20.4 million of operating earnings in the quarter, a remarkable 53% increase versus operating earnings of $13.3 million in the prior-year quarter and a record earnings quarter for this segment. Slide 5 shows a summary of results in Engineered Materials segment, with sales up $239 million, a 16% increase versus the prior-year quarter. Selling volumes were up 11%, driven primarily by increased sales to the large commercial transport sector. New programs driving the growth include the Boeing 787, 747-8 and Airbus 380. The ramp-up in build rates for our legacy aerospace programs such as the Boeing 777, 737 and the Airbus 320 further supported the volume growth. In addition, civil and military rotorcraft programs are maintaining steady growth due to the general recovery in these markets. Selling prices increased sales by 3% as we continue to make progress offsetting the higher cost of raw materials that began to impact this segment in 2011. Operating earnings of $41.6 million were up significantly over the fourth quarter 2010 as a result of the higher volumes and increased selling prices with some of the pricing being retroactive to previous quarters. Read the rest of this transcript for free on seekingalpha.com