Business Segments

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance needs of its customers’ most challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. The Company’s 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, who uses such information to make 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 are described in 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, 2022.

The operating results of the Company’s reportable segments were as follows for the periods presented:

	Three Months Ended June 30, 2023				Three Months Ended June 30, 2022
	Net Sales		Segment Operating Profit		Net Sales		Segment Operating Profit (Loss)
Rail, Technologies, and Services	$	91,616	$	6,627	$	81,797	$	3,998
Precast Concrete Products	33,865		1,296		23,611		(125)
Steel Products and Measurement	22,553		1,456		26,107		762
Total	$	148,034	$	9,379	$	131,515	$	4,635

	Six Months Ended June 30, 2023				Six Months Ended June 30, 2022
	Net Sales		Segment Operating Profit		Net Sales		Segment Operating Profit (Loss)
Rail, Technologies, and Services	$	156,000	$	9,015	$	145,507	$	5,037
Precast Concrete Products	58,153		948		38,621		(916)
Steel Products and Measurement	49,369		1,448		46,181		(1,386)
Total	$	263,522	$	11,411	$	230,309	$	2,735

Segment profit (loss) 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.

A reconciliation of reportable segment net profit to the Company’s consolidated total for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating profit for reportable segments	$	9,379	$	4,635	$	11,411	$	2,735
Interest expense - net	(1,574)		(384)		(2,962)		(754)
Other (expense) income - net	(719)		701		(2,546)		1,264
Unallocated corporate expenses and other unallocated charges	(3,030)		(2,155)		(4,559)		(2,542)
Income before income taxes	$	4,056	$	2,797	$	1,344	$	703

The following table illustrates assets of the Company by reportable segment for the periods presented:

	June 30, 2023		December 31, 2022
Rail, Technologies, and Services	$	177,515	$	172,111
Precast Concrete Products	104,892		108,598
Steel Products and Measurement	38,492		54,516
Unallocated corporate assets	30,669		30,085
Total	$	351,568	$	365,310

On June 30, 2023, the Company sold substantially all the operating assets of the prestressed concrete railroad tie business operated by its wholly-owned subsidiary, CXT Incorporated (“Ties”), located in Spokane, WA, for $2,368 in proceeds, subject to final working capital adjustments, generating a $1,009 loss on the sale, which was recorded in “Other expense (income) - net”. The Ties business was reported in the Rail Products business unit within the Rail, Technologies, and Services segment.

On March 30, 2023, the Company sold substantially all the operating assets of its Chemtec Energy Services LLC business (“Chemtec”) for $5,344 in proceeds, subject to final working capital adjustments, generating a $2,065 loss on the sale, which was recorded in “Other expense (income) - net.” The Chemtec business was reported in the Coatings and Measurement business unit within the Steel Products and Measurement segment.