Business Segments

9 Months Ended

Sep. 30, 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 tables illustrate revenues and profits from continuing operations of the Company by segment for the periods indicated:

		Three Months Ended				Nine Months Ended
		September 30, 2014				September 30, 2014
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products	$	102,105	$	11,533	$	283,085	$	23,685
Construction Products		49,907		3,251		119,100		7,838
Tubular Products		15,785		1,661		43,858		4,973
Total	$	167,797	$	16,445	$	446,043	$	36,496

		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

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				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Income for reportable segments	$	16,445	$	13,553	$	36,496	$	35,261
Interest expense		(126)		(118)		(375)		(376)
Interest income		140		149		431		494
Other income		47		638		297		953
LIFO income		302		553		500		299
Equity in income of nonconsolidated investments		477		296		823		892
Corporate expense, cost of capital elimination, and other unallocated charges		(3,423)		(1,049)		(8,782)		(4,962)
Income from continuing operations before income taxes	$	13,862	$	14,022	$	29,390	$	32,561