Business Segments

9 Months Ended

Sep. 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 its respective 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 be Rail Products and Services and Tubular and Energy Services, respectively. The name changes principally relate to adjacent market acquisitions which have 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				Nine Months Ended
		September 30, 2015				September 30, 2015
		Net		Segment		Net		Segment
		Sales		Profit		Sales		Profit
Rail Products and Services	$	87,972	$	6,984	$	252,530	$	19,469
Construction Products		54,093		4,456		137,899		10,842
Tubular and Energy Services		33,994		(79,873)	*	94,956		(77,557)	*
Total	$	176,059	$	(68,433)	$	485,385	$	(47,246)

* - Segment profit includes impairment of goodwill as further described in Note 4.

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

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, excluding recently acquired businesses. 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				Nine Months Ended
		September 30,				September 30,
		2015		2014		2015		2014
(Loss) income for reportable segments	$	(68,433)	$	16,445	$	(47,246)	$	36,496
Interest expense		(1,265)		(126)		(3,166)		(375)
Interest income		66		140		160		431
Other income		537		42		1,245		315
LIFO income		181		302		581		500
Equity in (loss) income of nonconsolidated investments		(299)		477		(312)		823
Corporate expense, cost of capital elimination, and other unallocated charges		(989)		(3,423)		(6,974)		(8,782)
(Loss) Income before income taxes	$	(70,202)	$	13,857	$	(55,712)	$	29,408

The following table illustrates assets of the Company by segment:

		September 30,		December 31,
		2015		2014
Rail Products and Services	$	263,208	$	239,951
Construction Products		96,764		102,978
Tubular and Energy Services		226,692		130,289
Unallocated corporate assets		32,618		30,192
LIFO		(7,708)		(8,289)
Total	$	611,574	$	495,121