Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

9.  DISCONTINUED OPERATIONS

OnJune 4, 2012, the Company sold substantially all of the assets and liabilities of its railway securement business, Shipping Systems Division (SSD), for $8,579,000to Holland, L.P., resulting in a pre-tax gain of approximately $3,508,000.  OnAugust 30, 2012, the Company sold substantially all of the assets and liabilities of its precise structural products business, Precise, for $2,643,000to Cianbro Fabrication and Coating Corporation, resulting in a pre-tax loss of approximately $315,000.  

The operations of thesedivisions qualify as a “component of an entity” under FASB ASC 205-20, “Presentation of Financial Statements – Discontinued Operations” and thus, the operations have been reclassified as discontinued and prior periods have been reclassified to conform to this presentation.  Future expenses of discontinued operations are not expected to be material.

Net sales and income, including the pre-tax gain of $3,193,000, from discontinued operations were as follows:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2011		2012		2011
		In thousands
Net sales	$	1,159	$	4,380	$	8,701	$	11,906
(Loss) income from discontinued operations	$	(343)	$	604	$	3,805	$	839
Income tax (benefit) expense		(104)		215		2,403		298
(Loss) income from discontinued operations	$	(239)	$	389	$	1,402	$	541

The effective tax rate in the nine-month period ended September 30, 2012 was significantly impacted by  $2,588,000 of goodwill allocated to SSD for discontinued operations which was not deductible for income tax purposes.

The following table details balance sheet information for discontinued operations:

		September 30, 2012		December 31, 2011
		In thousands
Current Assets	$	1,333	$	4,864
Other Assets
Property, plant and equipment-net		-		2,281
Goodwill		-		2,588
Other intangibles - net		-		177
Total Other Assets		-		5,046
Total Assets		1,333		9,910
Current Liabilities		263		1,294
Net assets of discontinued operations	$	1,070	$	8,616