Business Segment Information

9 Months Ended

Jun. 30, 2011

Business Segment Information

Business Segment Information

7.     BUSINESS SEGMENT INFORMATION

The Company is organized based on the products and services that it offers. Under this organizational structure, the Company has three reporting segments: Utility Solutions Group (USG), RF Shielding and Test (Test) and Filtration/Fluid Flow (Filtration).  The USG segment's operations consist of:  Aclara Power-Line Systems Inc. (Aclara PLS), Aclara RF Systems Inc. (Aclara RF), Aclara Software Inc., and Doble Engineering Company (Doble). The Aclara Group is a proven supplier of special purpose fixed-network communications systems for electric, gas and water utilities, including hardware and software to support advanced metering applications.  Doble provides high-end, intelligent diagnostic test solutions for the electric power delivery industry and is a leading supplier of partial discharge testing instruments used to assess the integrity of high voltage power delivery equipment.  Test segment operations represent the EMC Group, consisting primarily of ETS-Lindgren L.P. (ETS) and Lindgren R.F. Enclosures, Inc. (Lindgren).  The EMC Group is an industry leader in providing its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy.  The Filtration segment's operations consist of: PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair) and Thermoform Engineered Quality LLC (TEQ) (formerly named TekPackaging).  The companies within this segment primarily design and manufacture specialty filtration products, including hydraulic filter elements used in commercial aerospace applications, unique filter mechanisms used in micro-propulsion devices for satellites and custom designed filters for manned and unmanned aircraft. 

Management evaluates and measures the performance of its operating segments based on "Net Sales" and "EBIT", which are detailed in the table below.  EBIT is defined as earnings from continuing operations before interest and taxes.

(In thousands)	Three Months ended June 30,		Nine Months ended June 30,
NET SALES	2011	2010	2011	2010
USG	$  86,837	91,718	$ 264,018	224,950
Test	45,848	34,575	119,955	93,143
Filtration	43,641	31,289	119,037	81,475
Consolidated totals	$176,326	157,582	$ 503,010	399,568
EBIT
USG	$ 12,428	20,424	$   43,597	35,615
Test	4,616	3,397	11,739	6,193
Filtration	9,595	6,072	21,604	11,419
Corporate (loss)	(5,888)	(5,891)	(18,031)	(17,173)
Consolidated EBIT	20,751	24,002	58,909	36,054
Less: Interest expense	(534)	(791)	(1,846)	(3,028)
Earnings before income taxes	$ 20,217	23,211	$  57,063	33,026