The company reported full-year 2012 EPS of $3.28. EPS from continuing operations were $3.30 with $(0.02) of costs from discontinued operations. The company reported full-year 2011 EPS of $1.01. EPS from continuing operations were $1.18 with $(0.17) of costs from discontinued operations. Continuing operations included an after-tax impairment charge/loss on sale of $558 million, or EPS of ($1.64) related to the divestiture of Hussmann. Excluding these charges, the adjusted EPS for 2011 continuing operations was $2.82 (See EPS table)“In 2012, we improved the strength of our business operations, delivering increased operating margins, and a 23 percent improvement in adjusted earnings per share despite a challenging economic backdrop in a number of our key end markets,” said Michael W. Lamach, chairman and chief executive officer. “We are pleased with the progress we made during this past year. We made notable improvements in pricing capabilities, productivity and working capital management that helped to deliver the strong cash flow that supported our share buyback and dividend expansion. Our management team is focused on investing in multiple growth platforms identified in our planning process, as well as accelerating restructuring and cost reduction actions to generate sustained profitable growth in what we expect to be a slow growth economy in 2013.” Additional Highlights for the 2012 Fourth Quarter Revenues: The company’s reported revenues declined by 1 percent to $3,470 million, compared with revenues of $3,507 million for the 2011 fourth quarter. Total revenues, excluding the divested Hussmann business, were flat compared with 2011. U.S. revenues, excluding Hussmann, were flat compared with 2011, and revenues from international operations were also flat (up 1 percent excluding currency), as growth in Latin America and Asia was largely offset by declining activity in Europe. Operating Income and Margin: Operating income for the 2012 fourth quarter was $367.5 million, an increase of 8 percent (up 11 percent when adjusted for impairment and Hussmann) compared with the 2011 fourth quarter. The fourth-quarter operating margin was 10.6 percent compared to an operating margin of 9.7 percent (9.6 percent when adjusted for impairment and Hussmann) for the same period of 2011. Pricing actions and operational excellence initiatives drove the increase in operating profits and margins. These improvements were partially offset by inflation, higher investment spending and unfavorable revenue mix. Interest Expense and Other Income/Expense: Interest expense of $61 million for the fourth quarter of 2012 declined by approximately $9 million compared with the same period last year due to lower debt balances. Other income totaled $4 million for the fourth quarter of 2012 and declined slightly compared with the 2011 fourth quarter. Taxes: The company had a tax rate of 22 percent in the fourth quarter of 2012, including a $5 million tax benefit related to the Hussmann divestiture. Excluding this benefit, the tax rate was 24 percent. The company had an effective tax rate of 7 percent in the fourth quarter of 2011, including a $5 million tax benefit resulting from the Hussmann divestiture. Excluding this benefit and the corresponding adjustment to the asset impairment charge, the effective tax rate was 9 percent in the fourth quarter of 2011. Fourth-Quarter Business Review Climate Solutions delivers energy-efficient solutions globally and includes Trane, which provides heating, ventilation and air conditioning (HVAC) systems and building services, parts and controls for commercial buildings, and Thermo King, the leader in transport temperature control solutions. The total results of the divested Hussmann refrigeration business are included through the first three quarters of 2011. The company’s ownership interest in Hussmann was reported within other income/expense using the equity method of accounting for the fourth quarter of 2011 and for all of 2012. Fourth-quarter 2011 results also included approximately $37 million of revenues and $3 million of operating income from several Hussmann branch operations divested on November 30, 2011.