The sequential improvement in revenues was driven by MP whose revenues improved approximately 18%.
In addition to sequential strength in bookings, AWP bookings were flat with last year's pre-COVID levels and MP's bookings were up 53%.
Year-end customer backlogs increased 25% over prior year pre-COVID levels.
Our stringent cost control and producing the customer demand helped us deliver operating margins in line with prior year on 11% lower revenues, even with $18 million of restructuring and related charges.
AWP recorded near breakeven operating margins, including $11 million of restructuring charges and revenue down 18% from the prior year, representing a decremental margin of 7% or an incremental margin of 3% when excluding restructuring and related charges.
Our MP segment achieved outstanding financial results, reporting a 15 % operating margin while revenues were down slightly year-over-year reporting an 82% incremental margin.
Our intense focus on networking capital management drove a $129 million of free cash flow in the fourth quarter, delivering excellent full year cash flow generation.
We aggressively took out cost, not just manufacturing cost, we also executed on an SG&A cost reduction initiative with a target of SG&A percent of sales for 2021 of approximately 12.5%.
Overall revenue of $787 million was down 11% year-over-year.
For the quarter, we recorded an operating profit of $32 million compared to adjusted operating profit of $36 million in the fourth quarter of last year.
The overall operating profit resulted from revenues being down, combined with $18 million of severance and restructuring charges primarily in our AWP segment.
While lower revenues impacted our gross margins and resulted in elevated SG&A as a percentage of sales, our aggressive cost reduction actions allowed Terex to achieve an approximately 5% decremental margin in Q4.
This decremental margin was achieved despite $5 million of gross profit charges primarily due to restructuring.
In addition, SG&A was adversely impacted by $13 million primarily due to team members' severance and restructuring.
Excluding these charges, operating profit was $49 million and Terex achieved an incremental margin of 13% in the quarter.
The low operating income, interest and other expense was almost $10 million lower than Q4 of 2019 because of several factors, including: first, lower interest rates versus a year ago; second, $4 million of investment income; and third, non-recurrence of $2 million in FX losses recognized in the prior year.
Our 2020 global effective tax rate was approximately 18% compared to our previous estimate of 52%.
Finally, our reported earnings per share of $0.21 per share includes the adverse operating impact on gross profit and SG&A, offset by the favorable benefits in other income that I just discussed.
AWP sales of $412 million contracted by 18% compared to last year, driven by end markets in North America and Europe due to the impacts from the pandemic.
During Q4, our aerial products production was 16% lower than Q4 2019.
This continued aggressive production control allowed us to achieve almost $180 million reduction in aerial products inventory levels year-over-year.
AWP achieved strong decremental margin performance of 7% in the quarter, which includes $11 million of charges for severance and restructuring.
AWP fourth quarter bookings of $753 million were flat with pre-COVID Q4 2019 levels, while backlog at quarter end was $826 million, up 10% from the prior year.
MP had another solid quarter achieving 15% operating margins as markets continue to improve.
It is a testament to the MP team's operational strength to deliver these positive operating margins and revenues down 3%.
Sales were lower at $366 million, driven by cautious yet improving customer sentiment.
The MP team has been aggressively managing all elements of cost in a challenging market environment, resulting in incremental margin performance of 82%.
Backlog of $523 million was 59% higher than last year and up 81% sequentially.
MP saw its businesses strengthen through the quarter with bookings up 53% year-over-year and up 76% sequentially.
Significant cost actions reducing SG&A by $82 million from 2019 helped deliver 21% decremental margin and beat our 25% target.
We always had an SG&A target going back to our 2016 Analyst Day of 12.5% of sales.
The results of these actions is that we were able to reduce our SG&A cost structure by more than $100 million for 2021 versus 2019 and delivered the improved results detailed in my earlier comments.
These actions have enabled Terex to come into 2021 well-positioned to meet the 12.5% target.
Now I would like to update you on how we currently anticipate 2021 to develop financially.
We anticipate earnings per share of $1.95 to $2.35 per share based on sales of approximately $3.45 billion.
Importantly, we are planning for and look forward to reporting incremental, rather than decremental margins, which meet or exceed our 25% target for full year 2021.
Based upon global tax laws, we expect a 2021 tax rate of 19%.
For full year 2021, we are estimating free cash flow of approximately $100 million, reflecting another year of positive cash generation.
We also estimate capital expenditures, net of asset dispositions, will be approximately $9 million.
Taking together, these operational improvements drive our 2021 operating margin guidance of approximately 7%.
AWP margins are expected to be positive each quarter of 2021 with incremental margins well above our targeted 25%.
Turning to Page 13.
We have ample liquidity with greater than $1 billion available to us.
In connection with this arrangement, last week, the bank purchased approximately $100 million of our Terex Financial Services portfolio of receivables.
As a result of our strong liquidity position, including the proceeds from the sale of the TFS on-book portfolio, we initiated this week the repayment of approximately $200 million of term loans, reducing outstanding debt and lowering leverage.
In Q1, we will recognize the corporate and other operating gain of $7 million in connection with the TFS sale and interest and other charge of $2 million related to the repayment of the term loans.
We continue to invest in the business in 2020 at reduced levels and we'll continue to invest in 2021 with capital spending, net of assets disposition, of approximately $90 million.
The Board has approved a Q1 dividend of $0.12 per share as we return cash to shareholders.
From an operational perspective, the AWP team executed in Q4 by delivering breakeven operating margins despite $15 million of restructuring charges, aggressively taking cost out of the business to improve the ability to deliver future industry competitive margins and innovating by continuing to bring new products to market.
The financial performance of MP relative to market conditions by achieving an operating margin of 15% in Q4 demonstrates the MP team's strong execution.
MP's bookings improved and increased throughout the fourth quarter, resulting in bookings being up 53% year-over-year.

Summary:
Finally, our reported earnings per share of $0.21 per share includes the adverse operating impact on gross profit and SG&A, offset by the favorable benefits in other income that I just discussed.
Now I would like to update you on how we currently anticipate 2021 to develop financially.
We anticipate earnings per share of $1.95 to $2.35 per share based on sales of approximately $3.45 billion.
The Board has approved a Q1 dividend of $0.12 per share as we return cash to shareholders.