Business Segments

6 Months Ended

Jun. 30, 2011

BUSINESS SEGMENTS

BUSINESS SEGMENTS

3. BUSINESS SEGMENTS

The Company is organized and evaluated by product group, which is the basis for identifying reportable segments. The Company is engaged in the manufacture, fabrication and distribution of rail, construction and tubular products and services.

The following table illustrates revenues and profits of the Company by segment:

	Three Months Ended				Six Months Ended
	June 30, 2011				June 30, 2011
	Net		Segment		Net		Segment
	Sales		Profit		Sales		Profit/
	In thousands
Rail products	$	91,014	$	3,574	$	155,588	$	4,299
Construction products		73,026		5,784		119,806		7,478
Tubular products		9,661		1,978		15,412		2,722
Total	$	173,701	$	11,336	$	290,806	$	14,499

	Three Months Ended				Six Months Ended
	June 30, 2010				June 30, 2010
	Net		Segment		Net		Segment
	Sales		Profit		Sales		Profit
	In thousands
Rail products	$	52,685	$	3,011	$	93,745	$	4,999
Construction products		59,179		6,800		95,381		8,326
Tubular products		7,640		962		12,380		804
Total	$	119,504	$	10,773	$	201,506	$	14,129

Segment profits, as shown above, include internal cost of capital charges for assets used in the segment at a rate of, generally, 1% per month. There has been no change in the measurement of segment profit from December 31, 2010.

The following table provides a reconciliation of reportable segment net profit to the Company's consolidated total:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	In thousands
Income for reportable segments	$	11,336		$	10,773		$	14,499		$	14,129
Cost of capital for reportable segments		4,119			4,158			7,453			8,056
Interest expense		(135	)		(241	)		(273	)		(486	)
Interest income		60			107			150			181
Other income/(expense)		95			51			(41	)		153
LIFO (expense)/credit		(565	)		452			(696	)		751
Equity in income/(loss) of nonconsolidated investment		196			(94	)		283			(241	)
Amortization expense		(707	)		(95	)		(1,411	)		(98	)
Corporate expense and other unallocated charges		(5,241	)		(5,747	)		(9,822	)		(10,417	)
Income before income taxes	$	9,158		$	9,364		$	10,142		$	12,028