BUSINESS SEGMENTS

The Company is a leading manufacturer and distributor of products and services for transportation and energy infrastructure with locations in North America and Europe. The Company is organized and evaluated by product group, which is the basis for identifying reportable segments. Each segment represents a revenue-producing component of the Company for which separate financial information is produced internally that is subject to evaluation by the Company’s chief operating decision maker in deciding how to allocate resources. Each segment is evaluated based upon its segment profit contribution to the Company’s consolidated results.

The following table illustrates revenues and profits (losses) from operations of the Company by segment for the periods indicated:



	Three Months Ended June 30, 2017					Six Months Ended June 30, 2017
	Net Sales		Segment Profit (Loss)			Net Sales		Segment Profit (Loss)
Rail Products and Services	$	69,347	$	3,977		$	125,827	$	5,466
Construction Products	45,465		4,551			82,787		5,770
Tubular and Energy Services	30,048		(17		)	54,948		(525		)
Total	$	144,860	$	8,511		$	263,562	$	10,711



	Three Months Ended June 30, 2016					Six Months Ended June 30, 2016
	Net Sales		Segment Profit (Loss)			Net Sales		Segment Profit (Loss)
Rail Products and Services	$	67,503	$	(25,168	)	$	131,795	$	(24,427	)
Construction Products	40,348		3,944			72,228		4,392
Tubular and Energy Services	28,143		(102,983		)	58,281		(104,910		)
Total	$	135,994	$	(124,207	)	$	262,304	$	(124,945	)

Segment profit (loss) from operations, 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 (loss) from operations since December 31, 2016. The internal cost of capital charges are eliminated during the consolidation process.

The following table provides a reconciliation of reportable segment net profit (loss) from operations to the Company’s consolidated total:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Profit (loss) for reportable segments	$	8,511		$	(124,207	)	$	10,711		$	(124,945	)
Interest expense	(2,181		)	(1,652		)	(4,289		)	(2,822		)
Interest income	54			52			110			107
Other income (expense)	18			(107		)	13			(822		)
LIFO (expense) income	(192		)	452			(181		)	525
Equity in income (loss) of nonconsolidated investments	145			(487		)	(55		)	(683		)
Corporate expense, cost of capital elimination, and other unallocated charges	(2,856		)	(3,476		)	(4,801		)	(4,934		)
Income (loss) before income taxes	$	3,499		$	(129,425	)	$	1,508		$	(133,574	)

The following table illustrates assets of the Company by segment:



	June 30, 2017		December 31, 2016
Rail Products and Services	$	186,588	$	174,049
Construction Products	81,953		81,074
Tubular and Energy Services	99,076		100,006
Unallocated corporate assets	25,393		37,894
Total	$	393,010	$	393,023