Business Segments

3 Months Ended

Mar. 31, 2019

Business SegmentsThe 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 operates in three different operating segments: the Rail

Products and Services segment, the Construction Products segment, and the Tubular and Energy Services segment. The segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred; (b) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who makes decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. Operating segments are evaluated on their segment profit contribution to the Company's consolidated results. Other income and expenses, interest, income taxes, and certain other items are managed on a consolidated basis. The Company's segment accounting policies, unless otherwise noted, are the same as those described in the Note 2. Business Segments of the Notes to the Company's Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year-ended December 31, 2018.

The following table illustrates the Company's revenues and profit from operations by segment for the periods indicated:


	Three Months Ended March 31, 2019						Three Months Ended March 31, 2018
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Products and Services	$	75,694	$	3,479	$	62,170	$	2,048
Construction Products	37,345		834		28,900		18
Tubular and Energy Services	37,430		4,688		31,384		1,885
Total	$	150,469	$	9,001	$	122,454	$	3,951

Segment profit from operations, as shown above, includes allocated corporate operating expenses. Operating expenses related to corporate headquarter functions that directly support the segment activity are allocated based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments.

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


	Three Months Ended March 31,
	2019		2018
Profit for reportable segments	$	9,001	$	3,951
Interest expense - net	(1,355)		(1,887)

Other income	150		605


Unallocated corporate expenses and other unallocated charges	(3,468)		(4,002)
Income (loss) before income taxes	$	4,328	$	(1,333)

The following table illustrates assets of the Company by segment:


	March 31, 2019		December 31, 2018
Rail Products and Services	$	188,517	$	175,704
Construction Products	112,584		97,133
Tubular and Energy Services	99,485		90,402
Unallocated corporate assets	25,631		20,010
Total	$	426,217	$	383,249