Such forward-looking statements are subject to uncertainties and factors relating to Gardner Denver’s operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results to differ materially from those matters expressed in or implied by such forward-looking statements.Please refer to Gardner Denver’s fourth quarter 2011 earnings press release issued on February 9, 2012 for further information regarding potential uncertainties and factors that could cause actual results to differ from anticipated results. Gardner Denver does not undertake or plan to update these forward-looking statements even though the company’s situation may change. Therefore, you should not rely on these forward-looking statements a representing the company’s or its managements’ view as of any date subsequent to today. As a reminder, this call is being broadcast in listen only mode through a live webcast. This free webcast will be available for replay up to 90 days following the call through the investor relations page on the Gardner Denver website at www.GardnerDenver.com or the Thompson Street website at www.Earnings.com. Now, I’d like to turn the meeting back over to Barry. Barry L. Pennypacker Gardner Denver had a solid fourth quarter to cap off another outstanding year. We established quarterly records for diluted earnings per share in the fourth quarter and annual records for revenue, operating income, net income, diluted earnings per share, and cash flow from operations. For the full revenues were up 25%. Operating margins at 16.9% were up 360 basis points and diluted earnings per share for the year ended at $5.33 up 63%. On an adjusted basis, diluted earnings per share were $5.51, up 63% from $3.39 in 2010. Our orders for the fourth quarter were $598 million, up 15% versus prior year, up 13% organically and our book-to-build was close to one as revenues of $614 million were up 16%, 15% organically.
Sequentially from third quarter to fourth quarter, our orders declined 5%. Down 3% organically as we saw moderate declines in IPG, down 6% driven primarily by Europe, and EPG which was down 4%. In EPG Nash well servicing were up sequentially but not enough to offset the non-repeat of some larger orders in Emco Wheaton and moderate declines in Thomas.We are closely watching our orders as always. We are not panicked by moderating growth rates but rest assured we are prepared. Importantly we’re off to a strong start in January with orders up approximately 10% year-over-year and quarter-over-quarter. Backlog at year end was $670 million up 21% versus prior year. Our backlog positions us well as we head into 2012 and provides good visibility through the first half of the year. There is however some uncertainty as it relates to the later part of the year which I will discuss in more detail shortly. Operating income for the fourth quarter was $108 million, a 35% increase over last year as operating margins improved 240 basis points to 17.6%. Net income was $77 million, up 36% over last year’s fourth quarter and diluted earnings per share increased 41% to $1.52 and a $1.54 on an adjusted basis. In addition, our cash flow from operating activities totaled $300 million for the year and $88 million in the fourth quarter. Well ahead of net income and in 2011 our strong balance sheet enabled us to purchase $131 million of our outstanding shares, acquire Robuschi for approximately $200 million on December 15 th and invest $56 million in capital equipment focused on increasing capacity and reducing costs on the shop floor. Now, I’d like to give you a little more color on the performance of our two operating segments. Focusing on engineer products for the total year, revenues reached $1.1 billion up 40% and adjusted operating margins in EPG reached 23.7% for the year up 370 basis points year-over-year. Read the rest of this transcript for free on seekingalpha.com