Note 3 - Segment Information

9 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

3.  SEGMENT INFORMATION

The Company’s strategic business units are based on product lines and have been grouped into three reportable segments: carbon fibers, technical fibers and corporate/other products. The carbon fibers segment manufactures commercial carbon fibers used as reinforcement material in composites. The technical fibers segment manufactures oxidized acrylic fibers and specialty carbon fibers used to manufacture aircraft brake pads and for heat/fire barrier applications. These two segments also facilitate development of product and process applications to increase the demand for carbon fibers and technical fibers.

The carbon fibers and technical fibers segments’ production facilities are located geographically in the United States, Hungary and Mexico. The remaining business represented in the corporate/other products segment relates to water treatment and electrical services provided by the Hungarian operations and costs associated with the corporate headquarters.

           Management evaluates the performance of its operating segments on the basis of operating income (loss) contribution. The following tables present financial information on the Company’s operating segments for the three and nine months ended June 30, 2011 and 2010 (in thousands):

	Three months ended June 30, 2011
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	29,454	$	8,552	$	587		$	38,593
Cost of sales, excluding available unused capacity costs		23,222		7,164		497			30,883
Available unused capacity costs		2,827		431		-			3,258
Gross profit		3,405		957		90			4,452
Operating income (loss)		1,350		728		(3,327	)		(1,249	)
Depreciation		4,061		365		135			4,561
Capital expenditures		2,097		78		177			2,352

	Three months ended June 30, 2010
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	35,260	$	6,771	$	417		$	42,448
Cost of sales, excluding available unused capacity costs		28,914		5,187		232			34,333
Available unused capacity costs		3,189		271		-			3,460
Gross profit		3,157		1,313		185			4,655
Operating income (loss)		1,279		1,065		(3,223	)		(879	)
Depreciation		3,369		349		212			3,930
Capital expenditures		757		16		-			773
	Nine months ended June 30, 2011
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	84,642	$	22,346	$	1,566		$	108,554
Cost of sales, excluding available unused capacity costs		68,490		18,248		992			87,730
Available unused capacity costs		8,559		1,289		-			9,848
Gross profit		7,593		2,809		574			10,976
Operating income (loss)		1,374		2,025		(9,139	)		(5,740	)
Depreciation		11,405		1,057		594			13,056
Capital expenditures		4,086		527		625			5,238
	Nine months ended June 30, 2010
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	78,856	$	17,174	$	1,314		$	97,344
Cost of sales, excluding available unused capacity costs		62,293		13,469		1,014			76,776
Available unused capacity costs		9,349		1,165		-			10,514
Gross profit		7,214		2,540		300			10,054
Operating income (loss)		944		1,857		(11,475	)		(8,674	)
Depreciation		10,082		1,241		1,024			12,347
Capital expenditures		1,966		528		384			2,878
	Total Assets
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
June 30, 2011	$	282,809	$	31,673	$	24,423		$	338,905
September 30. 2010		263,600		22,655		35,885			322,140