Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Information

Note 6.   Segment Information

The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments.  All United States manufacturing is done at the facility located in Corpus Christi, Texas.  Foreign manufacturing is done by the Company’s wholly-owned subsidiaries, TMM, located in Malaysia, and TPT, located in the Netherlands.  A summary of the Company’s manufacturing operations by geographic area is presented below:

(In thousands)		United States (Corpus Christi)		Europe (TPT)		Asia (TMM)		Inter-Company Eliminations		Consolidated
As of and for the three months ended:
June 30, 2012
Net Sales:
Customer sales	$	8,899	$	1,986	$	3,223	$	-	$	14,108
Intercompany sales		-		1,221		1,677		(2,898)		-
Total Net Sales	$	8,899	$	3,207	$	4,900	$	(2,898)	$	14,108
Location profit (loss)	$	703	$	35	$	740	$	81	$	1,559
June 30, 2011
Net Sales:
Customer sales	$	5,882	$	3,007	$	1,600	$	-	$	10,489
Intercompany sales		-		764		2,578		(3,342)		-
Total Net Sales	$	5,882	$	3,771	$	4,178	$	(3,342)	$	10,489
Location profit	$	378	$	379	$	194	$	30	$	981
As of and for the six months ended:
June 30, 2012
Net Sales:
Customer sales	$	17,438	$	4,173	$	5,305	$	-	$	26,916
Intercompany sales		41		2,825		5,940		(8,806)		-
Total Net Sales	$	17,479	$	6,998	$	11,245	$	(8,806)	$	26,916
Location profit	$	1,588	$	292	$	1,127	$	(52)	$	2,955
Location assets	$	20,171	$	10,093	$	25,575	$	-	$	55,839
June 30, 2011
Net Sales:
Customer sales	$	11,250	$	5,624	$	3,200	$	-	$	20,074
Intercompany sales		-		1,627		4,488		(6,115)		-
Total Net Sales	$	11,250	$	7,251	$	7,688	$	(6,115)	$	20,074
Location profit	$	656	$	641	$	349	$	10	$	1,656
Location assets	$	15,520	$	10,742	$	18,067	$	-	$	44,329

Product sales of inventory between Corpus Christi, TPT and TMM are based on inter-company pricing, which includes an inter-company profit margin.  In the geographic information, the location loss from all locations is reflective of these inter-company prices, as is inventory at the Corpus Christi location prior to elimination adjustments.  Such presentation is consistent with the internal reporting reviewed by the Company’s chief operating decision maker.  The elimination entries include an adjustment to the cost of sales resulting from the adjustment to ending inventory to eliminate inter-company profit, and the reversal of a similar adjustment from a prior period.  To the extent there are net increases/declines period over period in Corpus Christi inventories that include an inter-company component, the net effect of these adjustments can decrease/increase location profit.

Sales from the subsidiary to the U.S. parent company and between subsidiaries are based upon profit margins which represent competitive pricing of similar products.  Intercompany sales consisted of SR, HITOX, ALUPREM and TIOPREM.