Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Note 4.

Discontinued Operations

On June 4, 2012, the Company sold substantially all of the assets and liabilities of its railway securement business, Shipping Systems Division (SSD), for $8,579,000 to Holland, L.P., resulting in a pre-tax gain of approximately $3,508,000. 

On August 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 these divisions 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.  SSD and Precise were previously reported in the Rail Products and Construction Products segment, respectively.

Net sales and income, including the pre-tax gain of $3,193,000, from discontinued operations were as follows for the years ended December 31:

		2012		2011		2010
		Dollars in thousands
Net sales	$	8,705	$	15,589	$	7,992
Income from discontinued operations	$	3,842	$	1,287	$	778
Income tax expense		2,418		459		292
Income from discontinued operations	$	1,424	$	828	$	486
Effective income tax rate		63.0	%	35.7	%	37.5	%

Goodwill of $2,588,000 allocated to SSD for discontinued operations was not deductible for income tax purposes.

The following table details balance sheet information for discontinued operations at December 31:

		2012		2011
		In thousands
Current Assets	$	464	$	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		464		9,910
Current Liabilities		106		1,294
Net assets of discontinued operations	$	358	$	8,616