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 September 30, 2017				Nine Months Ended September 30, 2017
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Products and Services	$	62,095	$	3,472	$	187,922	$	8,938
Construction Products	39,118		3,387		121,905		9,156
Tubular and Energy Services	30,279		2,298		85,227		1,774
Total	$	131,492	$	9,157	$	395,054	$	19,868



	Three Months Ended September 30, 2016					Nine Months Ended September 30, 2016
	Net Sales		Segment Profit (Loss)			Net Sales		Segment Profit (Loss)
Rail Products and Services	$	56,891	$	(2,047	)	$	188,686	$	(26,474	)
Construction Products	34,870		1,356			107,098		5,748
Tubular and Energy Services	22,883		(6,966		)	81,164		(111,876		)
Total	$	114,644	$	(7,657	)	$	376,948	$	(132,602	)

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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Profit (loss) for reportable segments	$	9,157		$	(7,657	)	$	19,868		$	(132,602	)
Interest expense	(2,026		)	(1,520		)	(6,315		)	(4,342		)
Interest income	56			50			166			157
Other income	551			1,085			564			263
LIFO (expense) income	(1,552		)	917			(1,733		)	1,442
Equity in income (loss) of nonconsolidated investments	50			(263		)	(5		)	(946		)
Corporate expense, cost of capital elimination, and other unallocated charges	(3,222		)	(1,973		)	(8,023		)	(6,907		)
Income (loss) before income taxes	$	3,014		$	(9,361	)	$	4,522		$	(142,935	)

The following table illustrates assets of the Company by segment:



	September 30, 2017		December 31, 2016
Rail Products and Services	$	198,761	$	174,049
Construction Products	88,542		81,074
Tubular and Energy Services	100,046		100,006
Unallocated corporate assets	21,815		37,894
Total	$	409,164	$	393,023