Income from continuing operations was $212 million or $1.99 per fully diluted share for the fourth quarter compared to income from continuing operations of $195 million, or $1.83 per fully diluted share in the fourth quarter of 2011. Earnings per share were reduced by $0.06 in the quarter due to restructuring costs, $0.07 due to pension curtailment charges and $0.01 due to excess first year purchase accounting charges at International Mining Machinery. Bookings decreased 5 percent to $1.3 billion in the fourth quarter of fiscal 2012, with year over year order declines in our legacy business partially offset by $75 million of incremental bookings from LeTourneau and $40 million of bookings from IMM. Backlog at the end of the fourth quarter was $2.6 billion compared to $2.8 billion at the end of the third quarter.
Market Outlook: The Company has seen significant adjustments in some of its core markets. In the U.S., weak demand for electricity combined with a plentiful supply of natural gas reduced natural gas prices to historically low levels. The slowing of economic growth and industrial production in China has reduced the demand for thermal coal used in power generation. By the third calendar quarter, demand growth was almost flat with the prior year while domestic production continued to increase, and stockpiles rose to maximum levels at the domestic transfer port of Qinhuangdao. Despite this depressed outlook, there is the potential for upside.
Company Outlook "With the expectation that current market conditions will continue and result in lower volumes in 2013, we have begun the process of taking out costs and structurally lowering our cost base. This will be necessary if current market conditions persist for a longer period, and will provide increased leverage if market conditions improve. In our fourth quarter, we took $20 million of charges to restructure certain U.S. pension plans and to downsize our production to match current order rates." "We expect a 6 month payback and those savings are incorporated into our 2013 guidance...Our International Mining Machinery acquisition has been a challenge in 2012. The startup of our integration and synergy programs were offset by the weakness in the domestic China coal market." "Volumes were further impacted in our fourth quarter by disruptions related to regime change in China. October's bump in electricity demand is encouraging, and we saw that momentum carry into November." "We expect 2013 to be a recovery year for IMM, reversing the declines of 2012. That is also incorporated into our guidance for 2013.