The additional simplification/modernization savings in fiscal year '21 bought the total savings achieved from the program to $186 million, in line with the target range we announced in our December 2017 Investor Day, despite lower volumes than we envisioned at that time.
And our new indexable milling platform, Mill 4-15, designed to improve customer productivity to gain share, especially in general engineering.
We saw underlying momentum picking up across all our end markets, and in the fourth quarter we posted 29% organic growth versus a decline of 33% in the prior year quarter.
Our adjusted EBITDA margin increased to 19.2%, driven mainly by increasing volume and associated absorption, incremental simplification/modernization benefits, partially offset by the reversal of temporary cost control actions taken in the prior year.
Free operating cash flow was $66 million for the quarter and $113 million for the full year.
Adjusted earnings per share was $0.53 for the quarter.
The margins at the trough were 600 basis points higher through this downturn, illustrating our substantially improved cost structure.
You can see from the slide that on a sequential basis we increased operating income by 57% on a 6% increase in sales.
This strong operating leverage is also evident on a year-over-year basis and even more impressive when you consider the roughly $45 million of temporary cost actions we took in the prior year quarter.
For the quarter, sales of $516 million improved 36% year-over-year and 29% on an organic basis from the low of $379 million in the fourth quarter last year.
Foreign currency had a positive effect of 6% on sales and business days contributed another 1%.
Adjusted gross profit margin of 34.5% was up 680 basis points year-over-year.
Adjusted operating expenses increased year-over-year to $108 million, reflecting the reversal of temporary cost actions taken last year.
Nevertheless, we were able to hold our operating expenses at 20.9% of sales, close to our target of 20% this quarter.
Adjusted EBITDA margin increased to 19.2%, up 150 basis points from the prior year quarter and adjusted operating margin of 12.8% was up 400 basis points year-over-year.
The 19.2% adjusted EBITDA margin is another validation point related to the successful execution of commercial and operational excellence.
The last time adjusted EBITDA margins were over 19% was in the third and fourth quarters of fiscal year 2019, and that was based on quarterly sales of approximately $600 million or 15% higher than this quarter.
This is yet another data point of the structural cost improvements we have made in confirming our ability to achieve the 24% to 26% adjusted EBITDA margin target as sales reached the $2.5 billion to $2.6 billion level.
The improved year-over-year performance was related to higher volumes and associated absorption, benefits from simplification/modernization and a slight positive from price and raw materials, partially offset by roughly $45 million of temporary cost actions taken last year and a modest mix headwind.
The adjusted effective tax rate in the quarter was 24.3%, a more normalized level than the previous year due to higher pre-tax income as well as a reduced effect of GILTI on the effective tax rate this quarter.
The adjusted effective tax rate for the full year was approximately 23.6% as expected.
We reported GAAP earnings per share of $0.41 versus a loss per share of $0.
11 in the prior year period.
On an adjusted basis, earnings per share was $0.53 per share versus $0.15 in the prior year quarter.
The effect of operations this quarter amounted to positive $0.02 compared to negative $0.68 in the prior year quarter and negative $0.33 in the third quarter of this fiscal year.
The operations bucket turned positive for the first time since Q3 of fiscal year '19, reflecting improving volumes offset by approximately $0.26 related to the reversal of temporary cost actions in effect last year.
Simplification/modernization contributed an incremental $0.13 in the quarter, bringing the total FY '21 simplification/modernization savings to $0.68 or $85 million and $186 million for the total program.
Slides 8 and 9 detail the favorable performance and continuing progress we have achieved on our initiatives in our segments this quarter.
Metal cutting sales increased 30% organically versus a 35% decline in the prior year period.
All regions posted year-over-year sales increases with the largest increase in EMEA at 37%, followed by the Americas at 30% and Asia Pacific at 23%.
Transportation was the strongest end market with 50% growth, followed by general engineering, up 35%.
Energy was up 4% year-over-year despite slowing demand in China due to the reduced wind subsidies.
Although aerospace declined 7% year-over-year, it showed the strongest sequential improvement, up 10%.
Transportation declined 11% sequentially due to the temporary supply chain challenges, which force transportation customers to slow their metal cutting factories like engine plants to better align with their overall production.
Adjusted operating margin improved 540 basis points to 11.7% compared to 6.3% in the prior year quarter.
Organic sales increased 28% year-over-year versus a 29% decline in the prior year period.
FX and business days contributed positively to sales in the amount of 5% and 1%, respectively.
Regionally, the largest increase year-over-year was in the Americas at 35%, then EMEA at 29% and Asia at 14%.
By end market, the results were primarily driven by general engineering and energy, up 42% and 41%, respectively.
Earthworks was up 12%.
Adjusted operating margin increased to 14.5% from 12.7% in the prior year quarter.
At fiscal year-end, we had combined cash and revolver availability of approximately $850 million.
Primary working capital of $602 million was relatively flat year-over-year and down approximately $13 million sequentially.
On a percentage of sales basis, it decreased to 33.4% as our focus on working capital during the year continued to strengthen our free operating cash flow even as sales have increased.
Our primary working capital target remains 30%, which we expect to approach by the end of this fiscal year.
Our fourth quarter free operating cash flow was $66 million, a significant year-over-year increase, reflecting higher income due to volume and strong operating leverage.
This is similar on a full year basis with free operating cash flow of $113 million compared to negative $18 million last year.
Net capital expenditures for the quarter were $30 million, a decrease of approximately $8 million from the prior year, bringing the total net capital spend for the year to $123 million, in line with our expectations.
We also paid the dividend of $17 million in the quarter.
Starting with the first quarter, we expect sales to be in the range of $470 million to $490 million.
At the midpoint, this implies year-over-year growth of approximately 20% and approximately 7% sequential decline, which is stronger than our normal Q4 to Q1 pattern.
Assuming our current outlook, we expect adjusted operating income to be a minimum of $45 million and to improve by at least 300% year-over-year despite the $15 million in Q1 year-over-year headwinds related to temporary cost actions taken last year.
Also, we expect the adjusted effective tax rate to be in the range of 25% to 28%, and depreciation and amortization will increase $3 million to $4 million year-over-year.
Keep in mind, this annual operating leverage is excluding approximately $25 million of year-over-year headwinds from temporary cost actions taken last year, of which approximately $15 million will return in Q1 and the remaining $10 million in Q2.
We expect an adjusted effective tax rate of 25% to 28%.
Depreciation and amortization is expected to increase $15 million to $20 million year-over-year to a range of $140 million to $145 million.
Capital expenditures will be consistent with this year and in the range of $110 million to $130 million.
As I mentioned earlier, we expect primary working capital to trend toward our 30% goal by the end of the fiscal year.
Together, this will translate to free operating cash flow generation and approximately 100% of adjusted net income, in line with our long-term target, which further demonstrates our progress in transforming the company by continued execution of our operational and commercial excellence initiatives.
Looking ahead in fiscal year '22, we are excited to build off Q4's momentum by leveraging our modernized footprint and strong operating leverage to drive growth and higher profitability as well as cash flow at approximately 100% of net income.
In summary, I believe fiscal year '22 will be a year where we further demonstrate the ability to achieve our adjusted EBITDA target when sales reached $2.5 billion to $2.6 billion by continuing to execute on our strategic operational and commercial excellence initiatives.

Summary:
Adjusted earnings per share was $0.53 for the quarter.
For the quarter, sales of $516 million improved 36% year-over-year and 29% on an organic basis from the low of $379 million in the fourth quarter last year.
We reported GAAP earnings per share of $0.41 versus a loss per share of $0.
On an adjusted basis, earnings per share was $0.53 per share versus $0.15 in the prior year quarter.
Metal cutting sales increased 30% organically versus a 35% decline in the prior year period.
All regions posted year-over-year sales increases with the largest increase in EMEA at 37%, followed by the Americas at 30% and Asia Pacific at 23%.
Our primary working capital target remains 30%, which we expect to approach by the end of this fiscal year.
Net capital expenditures for the quarter were $30 million, a decrease of approximately $8 million from the prior year, bringing the total net capital spend for the year to $123 million, in line with our expectations.
We also paid the dividend of $17 million in the quarter.
Also, we expect the adjusted effective tax rate to be in the range of 25% to 28%, and depreciation and amortization will increase $3 million to $4 million year-over-year.
We expect an adjusted effective tax rate of 25% to 28%.
Capital expenditures will be consistent with this year and in the range of $110 million to $130 million.
As I mentioned earlier, we expect primary working capital to trend toward our 30% goal by the end of the fiscal year.