In HVAC, our volume was down related to an unusually warm winter, the reduction of high efficiency consumer incentives, and the R22 dry ship, mix shift. Outside of our operating performance, highlights in the quarter included; first, launch of 20 new products, nine of which were energy efficient products.

Second, we were awarded supplier of the year, and most innovative supplier of the year by two of our top 20 customers. Third, we were able to reduce the warranty accrual that we took in the second quarter by $15.4 million.

Fourth, we restructured portions of our European and Australian operation to yield benefits in 2012. And finally, we continued a smooth integration of EPC and we are on track to achieve our first-year synergy run rate target $10 million.

With that, I will turn over to Chuck Hinrichs.

Charles A. Hinrichs

Thank you, Mark, and good morning everyone. I will start with slide number six, comparing our actual fourth quarter 2011 results to our earlier guidance. You recall, our earlier fourth quarter EPS guidance was $0.70 per share, excluding the EPC inventory purchase accounting adjustment estimated at $0.25 per share. Our actual adjusted EPS of $0.93 per share compares very well to our earlier EPC guidance – EPS guidance of $0.70.

Both EPS numbers then exclude the EPC inventory purchase accounting adjustments as shown.

The schedule then adjust the actual fourth quarter EPS by adding the $0.23 decrease in the incremental warranty reserve expense and deducting the $0.10 per share restructuring charges neither of which were in our original guidance. The last row reconciles to our GAAP EPS, the actual fourth quarter EPS of $0.80 and the GAAP guidance of $0.45 per share.

Next slide provide some color on our fourth quarter results compared to our guidance. First, EPC performed very well in the quarter. We started to realize synergies and EPC had lower SG&A expenses during the fourth quarter.

Read the rest of this transcript for free on seekingalpha.com

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