Business Segments

3 Months Ended

Mar. 31, 2014

Business Segments [Abstract]

BUSINESS SEGMENTS

2. 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.

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

		Three Months Ended
		March 31, 2014				March 31, 2013
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products	$	73,496	$	5,316	$	81,399	$	6,201
Construction Products		27,383		1,216		36,811		462
Tubular Products		10,535		586		11,111		2,607
Total	$	111,414	$	7,118	$	129,321	$	9,270

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, 2013. The 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
		March 31,
		2014		2013
Income for reportable segments	$	7,118	$	9,270
Interest expense		(123)		(133)
Interest income		144		206
Other income		135		178
LIFO expense		(4)		(240)
Equity in income of nonconsolidated investment		204		176
Corporate expense, cost of capital elimination,
and other unallocated charges		(2,153)		(2,013)
Income from continuing operations before income taxes	$	5,321	$	7,444