Business Segments

9 Months Ended

Sep. 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				Nine Months Ended
	September 30, 2011				September 30, 2011
	Net		Segment		Net		Segment
	Sales		Profit		Sales		Profit
	In thousands
Rail products	$	91,833	$	9,311	$	247,421	$	13,610
Construction products		62,098		4,917		181,904		12,395
Tubular products		8,770		1,951		24,182		4,673
Total	$	162,701	$	16,179	$	453,507	$	30,678

	Three Months Ended				Nine Months Ended
	September 30, 2010				September 30, 2010
	Net		Segment		Net		Segment
	Sales		Profit		Sales		Profit
	In thousands
Rail products	$	54,897	$	3,256	$	148,642	$	8,255
Construction products		62,845		5,873		158,226		14,199
Tubular products		7,819		1,515		20,199		2,319
Total	$	125,561	$	10,644	$	327,067	$	24,773

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						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	In thousands
Income for reportable segments	$	16,179		$	10,644		$	30,678		$	24,773
Cost of capital for reportable segments		4,015			4,158			11,468			12,006
Amortization expense		(706	)		(95	)		(2,116	)		(192	)
Interest expense		(170	)		(211	)		(443	)		(697	)
Interest income		74			114			224			295
Equity in income/(loss) of nonconsolidated investment		287			(31	)		570			(272	)
Gain on foreign exchange		715			0			505			0
Other income/(expense)		15			(8	)		76			38
LIFO (expense)/credit		(444	)		673			(1,140	)		1,424
Corporate expense and other unallocated charges		(5,704	)		(5,142	)		(15,420	)		(15,245	)
Income before income taxes	$	14,261		$	10,102		$	24,402		$	22,130