CMC's exceptional fiscal-2021 performance translated to a return on invested capital of 14%, more than double the average for the three-year period proceeding our fiscal 2019 rebar asset acquisition.
CMC shipped more product out of our mills than ever before, with six of our 10 mills setting all-time shipment records and seven achieving best-ever production levels.
To underscore the strength of this accomplishment, particularly with an inflationary environment, I would point out that over the same time frame, the Census Bureau's producer price index increased almost 10%.
Following the full closure of CMC's former Steel California operations, we're now capturing an annual EBITDA benefit of approximately $25 million, while continuing to serve the West Coast market effectively and efficiently with bar source from lower-cost CMC mills.
When these actions complete, we are halfway to our stated target of $50 million on an annual optimization benefits.
On the sustainability front, CMC published its latest report in June, featuring enhanced disclosures and a commitment to achieve ambitious environmental goals by the year 2030.
CMC has been sustainable since its inception 106 years ago as a single location recycling operation in Dallas, Texas, and we have carried that legacy forward into the 21st century.
CMC generated earnings from continuing operations of $152.3 million or $1.24 per diluted share.
Excluding the impact of a small one-time charge related to the write down of a recycling asset, adjusted earnings from continuing operations were $154.2 million, or $1.26 per diluted share.
This level of adjusted earnings represents a 21% sequential increase and a 62% year-over-year increase, driven by strong margins on steel products and raw materials, as well as robust demand from nearly every end market we serve.
During the quarter, CMC generated an annualized return on invested capital of 20%, which is far in excess of our cost of capital and a clear indication of the economic value we are creating for our shareholders.
The only comment to add is that during the two months of commercial production at our new rolling line, EBITDA on an annualized basis far exceeded the $20 million target used to justify the project.
Construction of our revolutionary third micro mill the Arizona 2 remains on schedule for an early calendar 2023 start-up.
When CMC announced the construction of Arizona 2 in August of 2020, we also indicated that a meaningful portion of the investment costs would be funded through the sale of the land underlying our former Steel California operations.
On September 29, CMC entered into an agreement to sell that parcel for roughly $300 million.
I would note that the sale price was much higher than the figure we estimated in August 2020 when we gave an expected net investment figure of $300 million for Arizona 2.
The new rate of $0.14 per share of CMC common stock is payable to stockholders of record on October 27, 2021.
Additionally, as announced yesterday, the board of directors also authorized a new share repurchase program of $350 million.
As Barbara noted, we reported record earnings from continuing operations of $152.3 million or $1.24 per diluted share, more than double prior-year levels of $67.8 million and $0.56, respectively.
Results this quarter include a net after-tax charge of $1.9 million related to the write-down of recycling assets.
Excluding the impact of this item, adjusted earnings from continuing operations were $154.2 million or $1.26 per diluted share.
Core EBITDA from continuing operations was $255.9 million for the fourth quarter of 2021, up 45% from a year-ago period and 11% on a sequential basis.
Both of our North America and Europe segments contributed significantly to year-over-year earnings growth, while core EBITDA per ton of finished steel reached a record level of $155 per ton.
The fourth quarter marked the tenth consecutive quarter in which CMC generated an annualized return on invested capital at or above 10%, which is above our cost of capital.
North American segment recorded adjusted EBITDA of $212 million for the quarter, an all-time high, compared to adjusted EBITDA of $174.2 million in the same period last year.
The largest drivers of this 22% improvement were significant increase in margins on steel products and raw materials, as well as solid volume growth.
Selling prices for steel products from our mills increased by $300 per ton on a year-over-year basis and $106 per ton sequentially.
Margin over scrap on steel products increased by $103 per ton from a year ago and $41 per ton sequentially.
The average selling price of downstream products increased by $44 per ton from the prior year, reaching $1,014.
Shipments of finished product in the fourth quarter increased 2% from a year ago.
Volumes of merchant and other steel products hit a record level during the quarter, increasing 29% on a year-over-year basis and were 20% higher than the trailing three-year average.
Downstream product shipments were impacted by a reduced backlog we had at the beginning of the year and resulted in a 3% volume decline from the fourth quarter of fiscal 2020.
Our Europe segment generated record adjusted EBITDA of $67.7 million for the fourth quarter of 2021, compared to adjusted EBITDA of $22.9 million in the prior-year quarter.
I should note that the prior-year period included a roughly $11 million energy credit that the current period does not.
Margins over scrap increased by $119 per ton on a year-over-year basis and were up $27 per ton from the prior quarter.
Tight market conditions provided the backdrop to achieve the segment's highest average selling price in more than a decade, reaching $763 per ton during the fourth quarter.
This level represented an increase of $317 per ton compared to a year ago and $99 per ton sequentially.
Europe volumes increased 21% compared to the prior year and reached their highest level on record.
The new share repurchase program equates to roughly 9% of our market capitalization and will replace the previous program enacted in 2015.
As of August 31, 2021, cash and cash equivalents totaled $498 million.
In addition, we had approximately $699 million of availability under our credit and accounts receivable programs.
During the quarter, we generated $134 million of cash from operations despite a $48 million increase in working capital.
As can be seen on Slide 17, our net debt-to-EBITDA ratio now sits at just 0.8%, while our net debt to capitalization is at 17%.
CMC's effective tax rate for the quarter was 21%.
For the year, our effective tax rate was 22.7%.
Absent enactment of any new corporate tax legislation, we forecast our tax rate to be between 25% and 26% in fiscal '22.
We currently expect to invest between $450 million to $500 million this year with a little over half of which can be attributed to Arizona 2.
Total gross investment for Arizona 2 is forecast to be approximately $500 million.
Against which, we'll apply roughly $260 million net after-tax proceeds from the land transaction.
This nets out to be $240 million of spend for the new mill, compared to the $300 million net investment figure we had previously provided.
We entered fiscal 2022 confident about what lies ahead.
The PCA expects growth in cement consumption of 2.2% in fiscal 2022 and 1.4% in 2023.
The AIA consensus outlook for private nonresidential spending anticipates an increase of roughly 5% in 2022.

Summary:
CMC generated earnings from continuing operations of $152.3 million or $1.24 per diluted share.
Excluding the impact of a small one-time charge related to the write down of a recycling asset, adjusted earnings from continuing operations were $154.2 million, or $1.26 per diluted share.
The new rate of $0.14 per share of CMC common stock is payable to stockholders of record on October 27, 2021.
As Barbara noted, we reported record earnings from continuing operations of $152.3 million or $1.24 per diluted share, more than double prior-year levels of $67.8 million and $0.56, respectively.
Excluding the impact of this item, adjusted earnings from continuing operations were $154.2 million or $1.26 per diluted share.
We entered fiscal 2022 confident about what lies ahead.