Business Segments

6 Months Ended

Jun. 30, 2015

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.

As a result of recently completed acquisitions, during the first quarter of 2015, the Company renamed the Rail Products and Tubular Products business segments to Rail Products and Services and Tubular and Energy Services, respectively. The name changes principally relate to adjacent market acquisitions which has created a platform to enhance our product and service offerings within the rail and energy markets. Excluding the addition of current year acquisitions, there were no changes to the divisions that have been aggregated within the segments nor were there changes to the historical reportable segment results.

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

		Three Months Ended				Six Months Ended
		June 30, 2015				June 30, 2015
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products and Services	$	86,882	$	6,413	$	164,558	$	12,485
Construction Products		49,516		5,158		83,806		6,386
Tubular and Energy Services		35,021		358		60,962		2,316
Total	$	171,419	$	11,929	$	309,326	$	21,187

		Three Months Ended				Six Months Ended
		June 30, 2014				June 30, 2014
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products and Services	$	107,484	$	6,836	$	180,980	$	12,152
Construction Products		41,810		3,371		69,193		4,587
Tubular and Energy Services		17,538		2,726		28,073		3,312
Total	$	166,832	$	12,933	$	278,246	$	20,051

Segment profits from 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 operations from December 31, 2014. The internal cost of capital charges are eliminated during the consolidation process.

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

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2015		2014		2015		2014
Income for reportable segments	$	11,929	$	12,933	$	21,187	$	20,051
Interest expense		(1,288)		(126)		(1,901)		(249)
Interest income		37		147		94		291
Other income		(95)		138		708		273
LIFO income		406		202		400		198
Equity in (loss) income of nonconsolidated investments		(186)		142		(13)		346
Corporate expense, cost of capital elimination, and other unallocated charges		(2,980)		(3,206)		(5,985)		(5,359)
Income before income taxes	$	7,823	$	10,230	$	14,490	$	15,551

The following table illustrates assets of the Company by segment:

		June 30,		December 31,
		2015		2014
Rail Products and Services	$	257,856	$	239,951
Construction Products		97,300		102,978
Tubular and Energy Services		318,521		130,289
Unallocated corporate assets		36,039		30,192
LIFO		(7,889)		(8,289)
Total	$	701,827	$	495,121