Business Segments

9 Months Ended

Sep. 30, 2013

Business Segments [Abstract]

BUSINESS SEGMENTS

3. BUSINESS SEGMENTS

The Company is a leading manufacturer, fabricator, and distributor of products and services for rail, construction, energy and utility markets. 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 and is subject to evaluation by the Company’s chief operating decision maker in deciding how to allocate resources. Each segment is evaluated based upon their contribution to the Company’s consolidated results based upon segment profit. Segment profit represents pre-tax income excluding certain corporate items, cost of capital charges and LIFO as reconciled below.

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

		Three Months Ended				Nine Months Ended
		September 30, 2013				September 30, 2013
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail products	$	105,552	$	9,713	$	277,843	$	21,749
Construction products		49,320		2,855		129,828		5,373
Tubular products		7,376		985		33,834		8,139
Total	$	162,248	$	13,553	$	441,505	$	35,261

		Three Months Ended				Nine Months Ended
		September 30, 2012				September 30, 2012
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail products	$	110,993	$	7,904	$	278,993	$	1,743
Construction products		45,948		3,083		132,173		6,062
Tubular products		13,405		3,783		36,651		9,501
Total	$	170,346	$	14,770	$	447,817	$	17,306

Segment profits from continuing 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 from continuing operations from December 31, 2012. Internal cost of capital charges are eliminated during the consolidation process.

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
Income for reportable segments	$	13,553	$	14,770	$	35,261	$	17,306
Interest expense		(118)		(141)		(376)		(405)
Interest income		149		126		494		319
Other income (expense)		638		(612)		953		(4)
LIFO income		553		432		299		333
Equity in income of nonconsolidated investment		296		310		892		643
Corporate expense, cost of capital elimination
and other unallocated charges		(1,049)		(1,774)		(4,962)		(5,178)
Income from continuing operations before income taxes	$	14,022	$	13,111	$	32,561	$	13,014