10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-5978

SIFCO Industries, Inc.

(Exact name of registrant as specified in its charter)

Ohio	34-0553950
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
970 East 64th Street, Cleveland Ohio	44103
(Address of principal executive offices)	(Zip Code)

(216) 881-8600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer”, “non-accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

The number of the Registrant’s Common Shares outstanding at March 31, 2014 was 5,413,129.

Part I. Financial Information

Item 1. Financial Statements

SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Operations

(Unaudited)

(Amounts in thousands, except per share data)

	Three Months Ended   March 31,						Six Months Ended   March 31,
	2014			2013			2014			2013
Net sales	$	29,044		$	28,004		$	55,696		$	55,448
Cost of goods sold	22,740			22,098			43,822			43,678
Gross profit	6,304			5,906			11,874			11,770
Selling, general and administrative expenses	3,444			2,957			6,902			6,498
Amortization of intangible assets	545			493			1,090			1,051
Loss (gain) on disposal of operating assets	—			3			(2		)	(122		)
Operating income	2,315			2,453			3,884			4,343
Interest income	(5		)	(9		)	(9		)	(14		)
Interest expense	51			79			136			185
Foreign currency exchange (gain) loss, net	(1		)	(8		)	6			—
Other income, net	(108		)	(109		)	(217		)	(186		)
Income from continuing operations before income tax provision	2,378			2,500			3,968			4,358
Income tax provision	867			731			1,303			1,412
Income from continuing operations	1,511			1,769			2,665			2,946
Income (loss) from discontinued operations, net of tax	(85		)	(334		)	(292		)	1,904
Net income	$	1,426		$	1,435		$	2,373		$	4,850
Income per share from continuing operations
Basic	$	0.28		$	0.33		$	0.49		$	0.55
Diluted	$	0.28		$	0.33		$	0.49		$	0.55
Income (loss) per share from discontinued operations, net of tax
Basic	$	(0.02	)	$	(0.06	)	$	(0.05	)	$	0.36
Diluted	$	(0.02	)	$	(0.06	)	$	(0.05	)	$	0.35
Net income per share
Basic	$	0.26		$	0.27		$	0.44		$	0.91
Diluted	$	0.26		$	0.27		$	0.44		$	0.90
Weighted-average number of common shares (basic)	5,407			5,364			5,393			5,353
Weighted-average number of common shares (diluted)	5,423			5,404			5,415			5,398

See notes to unaudited consolidated condensed financial statements.

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SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Comprehensive Income

(Unaudited)

(Amounts in thousands, except per share data)

	Three Months Ended   March 31,					Six Months Ended   March 31,
	2014		2013			2014		2013
Net income	$	1,426	$	1,435		$	2,373	$	4,850
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	—		(1		)	—		(285		)
Retirement plan liability adjustment	153		329			302		558
Interest rate swap agreement adjustment	8		14			17		30
Comprehensive income	$	1,587	$	1,777		$	2,692	$	5,153

See notes to unaudited consolidated condensed financial statements.

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SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Balance Sheets

(Amounts in thousands, except per share data)

	March 31,   2014			September 30,   2013
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,511		$	4,508
Receivables, net of allowance for doubtful accounts of $297 and $481, respectively	22,194			24,811
Inventories, net	21,375			18,340
Deferred income taxes	987			987
Prepaid expenses and other current assets	2,336			1,767
Assets held for sale	264			278
Current assets of business from discontinued operations	184			2,059
Total current assets	51,851			52,750
Property, plant and equipment, net	31,081			29,632
Intangible assets, net	12,561			13,651
Goodwill	7,658			7,620
Other assets	1,279			1,240
Noncurrent assets of business from discontinued operations	6			872
Total assets	$	104,436		$	105,765
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	2,000		$	4,392
Accounts payable	11,661			6,773
Accrued liabilities	4,950			7,670
Current liabilities of business from discontinued operations	46			1,086
Total current liabilities	18,657			19,921
Long-term debt, net of current maturities	4,634			7,381
Deferred income taxes	1,774			1,733
Other long-term liabilities	4,370			4,717
Shareholders’ equity:
Serial preferred shares, no par value, authorized 1,000 shares	—			—
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares – 5,449 at March 31, 2014 and 5,407 at September 30, 2013	5,449			5,407
Additional paid-in capital	7,853			7,599
Retained earnings	71,123			68,750
Accumulated other comprehensive loss	(9,424		)	(9,743		)
Total shareholders’ equity	75,001			72,013
Total liabilities and shareholders’ equity	$	104,436		$	105,765

See notes to unaudited consolidated condensed financial statements.

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SIFCO Industries, Inc. and Subsidiaries

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(Amounts in thousands)

	Six Months Ended   March 31,
	2014			2013
Cash flows from operating activities:
Net income	$	2,373		$	4,850
Loss (income) from discontinued operations, net of tax	292			(1,904		)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,358			2,825
Gain on disposal of operating assets	(2		)	(122		)
LIFO income	(164		)	(407		)
Share transactions under company stock plan	292			30
Other long-term liabilities	(26		)	149
Deferred income taxes	41			(630		)
Changes in operating assets and liabilities:
Receivables	2,617			(1,783		)
Inventories	(2,871		)	(2,150		)
Accounts payable	4,850			(49		)
Other accrued liabilities	(949		)	(1,555		)
Accrued income and other taxes	(1,258		)	1,111
Other operating activities	(40		)	(1,434		)
Net cash provided by (used for) operating activities of continuing operations	8,513			(1,069		)
Net cash provided by operating activities of discontinued operations	471			875
Cash flows from investing activities:
Proceeds from disposal of operating assets	—			125
Capital expenditures	(3,714		)	(1,611		)
Net cash used for investing activities of continuing operations	(3,714		)	(1,486		)
Net cash provided by investing activities of discontinued operations	950			8,470
Cash flows from financing activities:
Payments on long term debt	(3,393		)	(1,000		)
Proceeds from revolving credit agreement	17,027			26,725
Repayments of revolving credit agreement	(18,774		)	(32,974		)
Proceeds from exercise of stock options	4			—
Cash dividends paid	(1,081		)	(1,073		)
Net cash used for financing activities of continuing operations	(6,217		)	(8,322		)
Increase (decrease) in cash and cash equivalents	3			(1,532		)
Cash and cash equivalents at the beginning of the period	4,508			7,176
Cash and cash equivalents at the end of the period	$	4,511		$	5,644
Supplemental disclosure of cash flow information of continuing operations:
Cash paid for interest	$	(108	)	$	(172	)
Cash paid for income taxes, net	(1,268		)	(2,241		)

See notes to unaudited consolidated condensed financial statements.

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SIFCO Industries, Inc. and Subsidiaries

Notes to Unaudited Consolidated Condensed Financial Statements

(Amounts in thousands, except per share data)

1. Summary of Significant Accounting Policies

A. Principles of Consolidation

The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated.

The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements.

These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2013 Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year.

B. Net Income per Share

The Company’s net income per basic share has been computed based on the weighted-average number of common shares outstanding. Net income per diluted share reflects the effect of the Company’s outstanding stock options, restricted shares and performance shares under the treasury stock method. The dilutive effect of the Company’s stock options, restricted shares and performance shares were as follows:

	Three Months Ended   March 31,						Six Months Ended   March 31,
	2014			2013			2014			2013
Income from continuing operations	$	1,511		$	1,769		$	2,665		$	2,946
Income (loss) from discontinued operations, net of tax	(85		)	(334		)	(292		)	1,904
Net income	$	1,426		$	1,435		$	2,373		$	4,850
Weighted-average common shares outstanding (basic)	5,407			5,364			5,393			5,353
Effect of dilutive securities:
Stock options	—			1			—			1
Restricted shares	13			9			15			8
Performance shares	3			30			7			36
Weighted-average common shares outstanding (diluted)	5,423			5,404			5,415			5,398
Net income per share – basic
Continuing operations	$	0.28		$	0.33		$	0.49		$	0.55
Discontinued operations	(0.02		)	(0.06		)	(0.05		)	0.36
Net income	$	0.26		$	0.27		$	0.44		$	0.91
Net income per share – diluted:
Continuing operations	$	0.28		$	0.33		$	0.49		$	0.55
Discontinued operations	(0.02		)	(0.06		)	(0.05		)	0.35
Net income	$	0.26		$	0.27		$	0.44		$	0.90
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share	24			51			22			78

C. Derivative Financial Instruments

The Company uses an interest rate swap agreement to reduce risk related to variable-rate debt, which is subject to changes in market rates of interest. The interest rate swap is designated as a cash flow hedge. At March 31, 2014 and at September 30, 2013, the Company held one interest rate swap agreement with a notional amount of $5,000 and $6,000, respectively. Cash flows related to the interest rate swap agreement are included in interest expense. The Company’s interest rate swap agreement and its variable-rate term debt are based upon LIBOR. During the first six months of fiscal 2014, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note interest risk.

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D. Reclassifications

Certain prior period amounts were reclassified to conform to the current consolidated financial statement presentation.

2. Inventories

Inventories consist of:

	March 31, 2014		September 30, 2013
Raw materials and supplies	$	5,072	$	5,906
Work-in-process	8,351		7,049
Finished goods	7,952		5,385
Total inventories	$	21,375	$	18,340

Inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) method for 43.8% and 35.8% of the Company’s inventories at March 31, 2014 and September 30, 2013, respectively. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories. If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $7,813 and $7,977 higher than reported at March 31, 2014 and September 30, 2013, respectively.

3. Goodwill and Intangible Assets

The Company’s intangible assets by major asset class subject to amortization consist of:

March 31, 2014	Estimated Useful Life	Original Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Trade name	10 years	$	2,000	$	546	$	1,454
Non-compete agreement	5 years	1,600		828		772
Below market lease	5 years	900		595		305
Customer relationships	10 years	13,800		3,801		9,999
Order backlog	1 year	2,200		2,169		31
Transition services	< 1 year	23		23		—
Total intangible assets		$	20,523	$	7,962	$	12,561

September 30, 2013	Estimated Useful Life	Original Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Trade name	10 years	$	2,000	$	446	$	1,554
Non-compete agreement	5 years	1,600		668		932
Below market lease	5 years	900		505		395
Customer relationships	10 years	13,800		3,111		10,689
Order backlog	1 year	2,200		2,119		81
Transition services	< 1 year	23		23		—
Total intangible assets		$	20,523	$	6,872	$	13,651

The amortization expense on identifiable intangible assets for the six months ended March 31, 2014 and 2013 was $1,090 and $1,051, and $545 and $493 during the second quarter of fiscal 2014 and 2013, respectively. Amortization expense associated with the identified intangible assets is expected to be as follows:

	Amortization Expense
Fiscal year 2014	$	2,161
Fiscal year 2015	2,080
Fiscal year 2016	1,854
Fiscal year 2017	1,617
Fiscal year 2018	1,596

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The Company’s goodwill is not being amortized and is subject to annual impairment tests. All of the goodwill is expected to be deductible for tax purposes. Changes in the net carrying amount of goodwill was as follows:

Balance at September 30, 2013	$	7,620
Goodwill purchase price adjustment	38
Balance at March 31, 2014	$	7,658

4. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows:

	March 31, 2014			September 30, 2013
Foreign currency translation adjustment, net of tax	$	(5,851	)	$	(5,851	)
Retirement plan liability adjustment, net of tax	(3,564		)	(3,866		)
Interest rate swap agreement adjustment, net of tax	(9		)	(26		)
Total accumulated other comprehensive loss	$	(9,424	)	$	(9,743	)

5. Long-Term Debt

Long-term debt consists of:

	March 31,   2014		September 30, 2013
Revolving credit agreement	1,634		$	3,381
Term loan	5,000		6,000
Promissory Note	—		2,392
	6,634		11,773
Less – current maturities	2,000		4,392
Total long-term debt	$	4,634	$	7,381

In October 2011, the Company entered into an amendment to its existing credit agreement (the “Credit Agreement Amendment”) with its bank increasing the maximum borrowing amount from $30,000 to $40,000, of which $10,000 is a five (5) year term loan and $30,000 is a five (5) year revolving loan, secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its Irish subsidiary. The term loan is repayable in quarterly installments of $500 starting December 1, 2011.

The term loan has a LIBOR-based variable interest rate that was 2.2% at March 31, 2014. This rate becomes an effective fixed rate of 2.9% after giving effect to an interest rate swap agreement.

Borrowing under the revolving loan bears interest at a rate equal to LIBOR plus 0.75% to 1.75%, which percentage fluctuates based on the Company’s leverage ratio of outstanding indebtedness to EBITDA. At March 31, 2014, the interest rate was 1.0%. The loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum leverage ratio and to maintain a minimum fixed charge coverage ratio. There is also a commitment fee ranging from 0.10% to 0.25% to be incurred on the unused balance. The Company was in compliance with all applicable loan covenants as of March 31, 2014.

In connection with the purchase of the forging business and substantially all related operating assets from GEL Industries, Inc. (DBA Quality Aluminum Forge) (“QAF”), the Company issued a non-interest bearing promissory note to the seller, which note was paid by the Company in November 2013. The imputed interest rate used to discount the note was 2.0% per annum.

6. Income Taxes

For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its continuing operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first six months of fiscal 2014 was 33%, compared to 32% for the same period of fiscal 2013, and differs from the U.S. federal statutory rate due primarily to (i) the impact of U.S. state and local income taxes, (ii) a domestic production activities deduction, (iii) application of tax credits, and (iv) the decrease in the reserve for uncertain tax positions.

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The effective rate for the first six months of fiscal 2014 reflects a $110 decrease in the reserve for uncertain tax positions, compared to the comparable period in fiscal 2013.

In September 2013, the Internal Revenue Service issued final regulations governing the income tax treatment of acquisitions, dispositions, and repairs of tangible property. Taxpayers are required to follow the new regulations in taxable years beginning on or after January 1, 2014.  Management is currently assessing the impact of the regulations and does not expect they will have a material impact on the Company’s consolidated financial statements.

The Company is subject to income taxes in the U.S. federal jurisdiction, and various states, local and non-U.S. jurisdictions. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2008.

At March 31, 2014 and September 30, 2013, the Company recorded liabilities of $67 and $177, respectively, for uncertain tax positions and any related interest and penalties. The Company classifies any interest and penalties related to uncertain tax positions in income tax expense. A summary of activity related to the Company’s uncertain tax positions is as follows:

Balance at September 30, 2013	$	177
Decrease due to tax positions effectively settled	(110		)
Balance at March 31, 2014	$	67

7. Retirement Benefit Plans

The Company and certain of its subsidiaries sponsor defined benefit pension plans covering most of its employees. The components of net periodic benefit cost of the Company’s defined benefit plans are as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Service cost	$	30		$	75		$	61		$	151
Interest cost	250			215			501			429
Expected return on plan assets	(393		)	(372		)	(786		)	(744		)
Amortization of prior service cost	—			2			—			4
Amortization of net loss	151			226			301			453
Settlement cost	50			191			125			191
Net periodic benefit cost	$	88		$	337		$	202		$	484

Through March 31, 2014 and 2013, the Company has made contributions in the amount of $255 and $360, respectively to its defined benefit pension plans. The Company does not anticipate making any additional contributions to fund its defined benefit pension plans during the balance of fiscal 2014.

8. Stock-Based Compensation

In previous periods, the Company awarded stock options under its shareholder approved 1995 Stock Option Plan (“1995 Plan”) and 1998 Long-term Incentive Plan (“1998 Plan”). No further options may be awarded under either the 1995 Plan or the 1998 Plan. The option exercise price is not less than fair market value on date of grant and options are exercisable no later than ten years from date of grant. All options awarded under both plans are fully vested as of March 31, 2014.

At March 31, 2014 and 2013, there was no unrecognized compensation cost related to the stock options granted under the Company’s stock option plans. There was no compensation expense related to stock options recognized in the six months ended March 31, 2014 and 2013. As of March 31, 2014, all options had been exercised.

The Company has awarded performance and restricted shares under its shareholder approved 2007 Long-Term Incentive Plan (“2007 Plan”). The aggregate number of shares that may be awarded under the 2007 Plan is 600 less any shares previously awarded and subject to an adjustment for the forfeiture of any unissued shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2007 Plan may be made in multiple forms including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such awards are exercisable no later than ten years from date of grant.

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The performance shares that have been awarded under the 2007 Plan generally provide for the issuance of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the making of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 150% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives.

With respect to such performance shares, compensation expense is being accrued. During each future reporting period, such expense may be subject to adjustment based upon the Company's financial performance, which impacts the number of common shares that it expects to issue upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of grant. The vesting of such shares is determined at the end of the performance period.

During the first six months of fiscal 2014, the Company granted 68 performance share awards under the 2007 Plan with a grant date fair value of $26.50 per share. The shares vest over a three year performance period. The Company terminated one of its performance share awards under the 2007 Plan that consisted of 45 performance share awards with a fair value of $16.03 per share. The Company granted a replacement award for 43 performance shares under the 2007 Plan with a grant date fair value of $26.50 per share. The shares vest over a two year performance period.

The Company has awarded restricted shares to its Directors, Officers, and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one (1)  year.

During the first six months of fiscal 2014, the Company granted 18 restricted shares under the 2007 Plan with a grant date fair value of $22.02 per share. The Company granted an additional 10 restricted shares under the 2007 Plan with a grant date fair value of $31.12 per share. The shares vest over a one year service period.

If all outstanding share awards are ultimately earned and issued at the target number of shares, then at March 31, 2014 there are approximately 283 shares that remain available for award. If any of the outstanding share awards are ultimately earned and issued at greater than the target number of shares, up to a maximum of 150% of such target, then a fewer number of shares would be available for award.

Stock-based compensation under the 2007 Plan was $553 and $367 during the first six months of fiscal 2014 and 2013 and $315 and $188 during the second quarter of fiscal 2014 and 2013, respectively. As of March 31, 2014, there was $3,154 of total unrecognized compensation cost related to the performance and restricted shares awarded under the 2007 Plan. The Company expects to recognize this cost over the next 2.5 years.

9. Business Acquisition

On July 23, 2013, SIFCO Industries, Inc.'s subsidiary completed the purchase of the forging business and substantially all related operating assets from MW General, Inc. (DBA General Aluminium Forgings). The forging business is operated in General Aluminum Forgings, LLC's ("GAF") Colorado Springs, Colorado facility, which is leased. The purchase price for the business and related assets of GAF was approximately $4,400, after certain adjustments related principally to the final working capital level.

The GAF purchase transaction was accounted for under the purchase method of accounting. The Company has substantially completed the purchase accounting related to the GAF acquisition.

The results of operation of GAF are included in the Company’s unaudited consolidated condensed statements of operations for the three months ended and six months ended March 31, 2014. The following unaudited pro forma information presents a summary of the results of operations for the Company including GAF as if the acquisition had occurred on October 1, 2012:

	Three Months Ended March 31, 2013		Six Months Ended March 31, 2013
Net sales	$	29,376	$	58,219
Net income	$	1,455	$	4,813
Net income per share (basic)	$	0.27	$	0.90
Net income per share (diluted)	$	0.27	$	0.89

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10. Discontinued Operations, Assets Held for Sale, and Business Divestiture

As part of the Company’s strategy to focus on its core competencies in the Aerospace and Energy ("A&E") market, the Company decided in the fourth quarter of 2013 to exit the Turbine Component Service and Repair ("Repair Group") business.

The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale at March 31, 2014 and September 30, 2013, respectively.

	March 31, 2014		September 30, 2013
Assets:
Receivables, net	$	142	$	1,067
Inventories, net	—		660
Deferred income taxes	42		317
Prepaid expenses and other current assets	—		15
Total current assets of business from discontinued operations	$	184	$	2,059
Current assets held for sale	$	264	$	278
Property, plant and equipment, net	$	—	$	840
Other assets	6		32
Total noncurrent assets of business from discontinued operations	$	6	$	872
Liabilities:
Accounts payable	46		278
Accrued liabilities	—		808
Total current liabilities of business from discontinued operations	$	46	$	1,086

As of March 31, 2014 and September 30, 2013, certain assets were recorded at the lower of carrying value or fair value.

The financial results of Repair Group included in discontinued operations were as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Net sales	$	—		$	1,590		$	1,339		$	2,846
Loss before income tax provision	(136		)	(495		)	(467		)	(937		)
Income tax benefit	(51		)	(195		)	(175		)	(381		)
Loss from discontinued operations, net of tax	$	(85	)	$	(300	)	$	(292	)	$	(556	)

As the Company exited the Repair Group, the Company recognized $959 in workforce reduction costs of which $274 was incurred in the first six months of fiscal 2014 and $701 was paid as of March 31, 2014.

On December 10, 2012, the Company completed the divestiture of its Applied Surface Concepts ("ASC") business. There were no assets or liabilities held for sale at March 31, 2014 and September 30, 2013.

The financial results of ASC included in discontinued operations were as follows:

	Three Months  Ended March 31, 2013			Six Months Ended March 31, 2013
Net sales	$	—		$	2,727
Income before income tax provision	—			180
Income tax provision	—			48
Income (loss) from operations, net of tax	—			132
Gain (loss) on sale of discontinued operations, net of tax	(34		)	2,328
Income (loss) from discontinued operations, net of tax	$	(34	)	$	2,460

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain various forward-looking statements and includes assumptions concerning the Company’s operations, future results and prospects. These forward-looking statements are based on current expectations and are subject to risk and uncertainties. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company provides this cautionary statement identifying important economic, political and technological factors, among others, the absence or effect of which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Such factors include the following: (1) the impact on business conditions in general, and on the demand for product in the Aerospace and Energy ("A&E") industries in particular, of the global economic outlook, including the continuation of military spending at or near current levels and the availability of capital and liquidity from banks and other providers of credit; (2) future business environment, including capital and consumer spending; (3) competitive factors, including the ability to replace business which may be lost; (4) metals and commodities price increases and the Company’s ability to recover such price increases; (5) successful development and market introduction of new products and services; (6) continued reliance on consumer acceptance of regional and business aircraft; (7) continued reliance on military spending, in general, and/or several major customers, in particular, for revenues; (8) the impact on future contributions to the Company’s defined benefit pension plans due to changes in actuarial assumptions, government regulations and the market value of plan assets; (9) stable governments, business conditions, laws, regulations and taxes in economies where business is conducted; and (10) the ability to successfully integrate businesses that may be acquired into the Company’s operations.

The Company and its subsidiaries engage in the production and sale of a variety of metalworking processes, services and products produced primarily to the specific design requirements of its customers. The processes and services include both conventional and precision forging, heat-treating, coating, welding, and precision component machining. The products include conventional and precision forged components, machined forged components, other machined metal components, and remanufactured component parts for turbine engines. The Company operates under one business segment: SIFCO Forged Components.

The Company endeavors to plan and evaluate its business operations while taking into consideration certain factors including the following: (i) the projected build rate for commercial; business and military aircraft as well as the engines that power such aircraft; (ii) the projected build rate for industrial gas turbine engines; (iii) the projected maintenance, repair and overhaul schedules for commercial, business and military aircraft as well as the engines that power such aircraft; and (iv) anticipated exploration and production activities relative to oil and gas products.

The Company operates within a cost structure that includes a significant fixed component. Therefore, higher net sales volumes are expected to result in greater operating income because such higher volumes allow the business operations to better leverage the fixed component of their respective cost structures. Conversely, the opposite effect is expected to occur at lower net sales and related production volumes.

A. Results of Operations

Non-GAAP Financial Measures

Presented below is certain financial information based on our EBITDA and Adjusted EBITDA. References to “EBITDA” mean earnings from continuing operations before interest, taxes, depreciation and amortization, and references to “Adjusted EBITDA” mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA.

Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under generally accepted accounting principles in the United States of America (“GAAP”). The Company presents EBITDA and Adjusted EBITDA because it believes that they are useful indicators for evaluating operating performance and liquidity, including the Company’s ability to incur and service debt and it uses EBITDA to evaluate prospective acquisitions. Although the Company uses EBITDA and Adjusted EBITDA for the reasons noted above, the use of these non-GAAP financial measures as analytical tools has limitations. Therefore, reviewers of the Company’s financial information should not consider them in isolation, or as a substitute for analysis of the Company's results of operations as reported in accordance with GAAP. Some of these limitations include:

• Neither EBITDA nor Adjusted EBITDA reflects the interest expense, or the cash requirements necessary to service interest payments, on indebtedness;

• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements;

• The omission of the substantial amortization expense associated with the Company’s intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and

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• Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its businesses. Management compensates for these limitations by not viewing EBITDA or Adjusted EBITDA in isolation and specifically by using other GAAP measures, such as net income, net sales, and operating profit, to measure operating performance. Neither EBITDA nor Adjusted EBITDA is a measurement of financial performance under GAAP, and neither should be considered as an alternative to net income or cash flow from operations determined in accordance with GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.

The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA:

Dollars in thousands	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2014			2013			2014			2013
Net income	$	1,426		$	1,435		$	2,373		$	4,850
Less: Income (loss) from discontinued operations, net of tax	(85		)	(334		)	(292		)	1,904
Income from continuing operations	1,511			1,769			2,665			2,946
Adjustments:
Depreciation and amortization expense	1,615			1,387			3,358			2,825
Interest expense, net	46			70			127			171
Income tax provision	867			731			1,303			1,412
EBITDA	4,039			3,957			7,453			7,354
Adjustments:
Foreign currency exchange (gain) loss, net (1)	(1		)	(8		)	6			—
Other income, net (2)	(108		)	(109		)	(217		)	(186		)
Loss (gain) on disposal of operating assets (3)	—			3			(2		)	(122		)
Non-recurring severance expense (4)	—			—			—			813
Equity compensation expense (5)	315			188			553			212
Pension settlement expense (6)	50			177			125			176
Acquisition transaction-related expenses (7)	35			—			45			15
LIFO income (8)	(82		)	(229		)	(164		)	(407		)
Adjusted EBITDA	$	4,248		$	3,979		$	7,799		$	7,855

(1) Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated.

(2) Represents miscellaneous non-operating income or expense, primarily rental income from our Irish subsidiary.

(3) Represents the difference between the proceeds from the sale of operating equipment and the carrying value shown on the Company’s books.

(4) Represents severance expense related to the departure of an executive officer. Included in the $0.8 million is $0.2 million of equity-based compensation expense recognized by the Company under its 2007 Long-term Incentive Plan.

(5) Represents the equity-based compensation expense recognized by the Company under its 2007 Long-term Incentive Plan.

(6) Represents expense incurred by a defined benefit pension plan related to settlement of pension obligations.

(7) Represents transaction-related costs such as legal, financial, tax due diligence expenses, valuation services costs, and executive travel that are required to be expensed as incurred.

(8) Represents the decrease in the reserve for inventories for which cost is determined using the last in, first out (“LIFO”) method.

Six Months Ended March 31, 2014 compared with Six Months Ended March 31, 2013

Overview

The Company exited two reportable segments: Applied Surface Concepts ("ASC") business in December, 2012 and Turbine Components Services and Repair ("Repair Group") business in September, 2013. The Company completed the purchase of the forging business and substantially all related operating assets from MW General, Inc. (DBA General Aluminium Forgings) in July, 2013. The Company's results for the first six months of fiscal 2014 include the results of General Aluminum Forgings ("GAF").

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Net Sales

Net sales for the first six months of fiscal 2014 increased $0.2 million to $55.7 million, compared to $55.5 million in the comparable period of fiscal 2013. The Company produces forged components for (i) turbine engines that power commercial business and regional aircraft, as well as military aircraft and armored military vehicles; (ii) airframe applications for a variety of aircraft; (iii) industrial gas turbine engines for power generation units; and (iv) other commercial applications. Net sales comparative information for the first six months of fiscal 2014 and 2013 is as follows:

(Dollars in millions)	Six Months Ended March 31,				Increase (Decrease)
Net Sales	2014		2013
Aerospace components for:
Fixed wing aircraft	$	29.0	$	27.8	$	1.2
Rotorcraft	15.4		16.4		(1.0		)
Energy components for power generation units	8.0		9.7		(1.7		)
Commercial product and other revenue	3.3		1.6		1.7
Total	$	55.7	$	55.5	$	0.2

Overall, net sales for the Company increased $0.2 million in the first six months of fiscal 2014 compared to the comparable period of fiscal 2013. The increase in fixed wing aircraft sales, due primarily to the acquisition of GAF, were offset by lower rotorcraft sales, resulting from decreased demand in the Black Hawk and V-22 military rotorcraft programs. The Company's lower energy components sales were due to the timing of sales to a major customer. The Company's higher commercial products and other revenue sales were due to sales related to a new ordnance program.

Commercial net sales were 54.6% of total net sales and military net sales were 45.4% of total net sales in the first six months of fiscal 2014, compared to 55.3% and 44.7%, respectively in the comparable period in fiscal 2013. Lower sales of the Compnay's energy components impacted commercial net sales for the first six months of fiscal 2014. Military net sales increased $0.5 million to $25.3 million in the first six months of fiscal 2014, compared to $24.8 million in the comparable period of fiscal 2013. This was due primarily to an increase in sales due to a new ordnance program, which was partially offset by the decline in military rotorcraft sales.

Cost of Goods Sold

Cost of goods sold was $43.8 million during the first six months of fiscal 2014, compared to $43.7 million in the comparable period of fiscal 2013.

Gross Profit

Gross profit was $11.9 million during the first six months of fiscal 2014, compared to $11.8 million in the comparable period of fiscal 2013.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $6.9 million, or 12.4% of net sales, during the first six months of fiscal 2014, compared to $6.5 million, or 11.7% of net sales, in the comparable period of fiscal 2013. The first six months of fiscal 2014 included a $0.8 million non-recurring severance payment to a former executive. Selling, general and administrative expenses increased by $1.2 million, primarily due to increases in compensation and benefit costs, an increase in depreciation expense due to accelerating depreciation on certain computer assets targeted to be replaced by an upcoming Enterprise Resource Planning ("ERP") system installation, increased legal and professional costs, and the addition of GAF.

Amortization of Intangibles

Amortization of intangibles was $1.1 million during both the first six months of fiscal 2014 and fiscal 2013.

Other/General

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreement in the first six months of both fiscal 2014 and 2013:

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	Weighted Average Interest Rate Six Months Ended March 31,				Weighted Average Outstanding Balance Six Months Ended March 31,
	2014		2013		2014	2013
Revolving credit agreement	1.0	%	1.2	%	$ 1.3 million	$ 5.2 million
Term note	2.9	%	2.9	%	$ 5.4 million	$ 7.6 million
Promissory note	2.0	%	2.0	%	$ 0.8 million	$ 2.3 million

Other income, net consists principally of $0.2 million of rental income earned from the lease of the Company's Cork, Ireland facility.

Income Taxes

The Company’s effective tax rate in the first six months of fiscal 2014 was 33%, compared to 32% in the comparable period in fiscal 2013, and differs from the U.S. federal statutory rate due primarily to (i) the impact of U.S. state and local taxes, (ii) domestic production activities deduction, (iii) application of tax credits, and (iv) the decrease in the reserve for uncertain tax positions.

Income from Continuing Operations

Income from continuing operations, net of tax was $2.7 million, or 4.8% of net sales, during the first six months of fiscal 2014, compared to $2.9 million, or 5.3% of net sales, in the comparable period of fiscal 2013.

(Loss)/Income from Discontinued Operations

Loss from discontinued operations, net of tax, was $0.3 million during the first six months of fiscal 2014, compared to income from discontinued operations, net of tax, of $1.9 million in the comparable period of fiscal 2013. This line item consists of income from discontinued operations related to ASC and the Repair Group.

The loss in fiscal 2014 is due to the shutdown costs and certain minimal continued operating costs associated with the closure of the Repair Group in the first quarter of fiscal 2014. The gain in fiscal 2013 is primarily due to the after-tax gain of $2.5 million on the sale of ASC during the first quarter of fiscal 2013.

Net Income

Net income decreased by $2.5 million, or 51.1%, to $2.4 million, or 4.3% of net sales, during the first six months of fiscal 2014, compared to net income of $4.8 million, or 8.7% of net sales, in the comparable period of fiscal 2013.  Net income decreased due to discontinued operations as noted above.

Three Months Ended March 31, 2014 compared with Three Months Ended March 31, 2013

Net Sales

Net sales for the second quarter of fiscal 2014 increased 3.7% to $29.0 million, compared to $28.0 million in the comparable period of fiscal 2013. Net sales comparative information for the second quarter of fiscal 2014 and 2013 is as follows:

(Dollars in millions)	Three Months Ended March 31,				Increase (Decrease)
Net Sales	2014		2013
Aerospace components for:
Fixed wing aircraft	$	14.5	$	13.8	$	0.7
Rotorcraft	6.6		8.3		(1.7		)
Energy components for power generation units	5.4		5.1		0.3
Commercial product and other revenue	2.5		0.8		1.7
Total	$	29.0	$	28.0	$	1.0

Overall, net sales for the Company increased $1.0 million in the second quarter fiscal 2014 compared to the comparable period of fiscal 2013. The Company's higher fixed wing aircraft sales were due primarily to the acquisition of GAF. The Company's lower rotorcraft sales were due primarily to a decrease in demand in the Black Hawk and V-22 military rotorcraft programs. The Company's higher commercial products and other revenue sales were due to sales related to a new ordnance program.

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Commercial net sales were 59.1% of total net sales and military net sales were 40.9% of total net sales in the second quarter of fiscal 2014, compared to 55.6% and 44.4%, respectively in the comparable period in fiscal 2013. Military net sales decreased $0.5 million to $11.9 million in the second quarter of fiscal 2014, compared to $12.4 million in the comparable period of fiscal 2013. This was due primarily to a decline in military rotorcraft sales, which was partially offset by an increase in sales due to a new ordnance program.

Cost of Goods Sold

Cost of goods sold increased by $0.6 million, or 2.9%, to $22.7 million during the second quarter of fiscal 2014, compared to $22.1 million in the comparable period of fiscal 2013. The increase in the dollar amount of cost of goods sold in the second quarter of fiscal 2014 compared to the comparable period of fiscal 2013 was primarily due to higher outside work related to die repair and higher than typical utilities expenses due to the unseasonably cold weather.

Gross Profit

Gross profit increased by $0.4 million, or 6.8%, to $6.3 million during the second quarter of fiscal 2014, compared to $5.9 million in the comparable period of fiscal 2013. Gross profit as a percentage of net sales increased to 21.7% during the second quarter of fiscal 2014, compared to 21.1% in the comparable period in fiscal 2013. This increase was primarily due product mix.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $3.4 million, or 11.9% of net sales, during the second quarter of fiscal 2014, compared to $3.0 million, or 10.6% of net sales in the comparable period of fiscal 2013. The increase in selling, general and administrative expenses in the second quarter of fiscal 2014 was due to increases in compensation and benefit costs, increased legal and professional costs, the addition of GAF and an increase in depreciation expense due to accelerating depreciation on certain computer assets targeted to be replaced by an upcoming ERP system installation, none of which were individually material.

Amortization of Intangibles

Amortization of intangibles was $0.5 million during both the second quarter of fiscal 2014 and fiscal 2013.

Other/General

The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s debt agreement in the second quarters of both fiscal 2014 and 2013:

	Weighted Average Interest Rate Three Months Ended March 31,				Weighted Average Outstanding Balance Three Months Ended March 31,
	2014		2013		2014	2013
Revolving credit agreement	1.0	%	1.1	%	$ 0.6 million	$ 1.9 million
Term note	2.9	%	2.9	%	$ 5.2 million	$ 7.3 million
Promissory note	—	%	2.0	%	$ 0.0 million	$ 2.3 million

Other income, net consists principally of $0.1 million of rental income earned from the lease of the Company's Cork, Ireland facility.

Income Taxes

The Company’s effective tax rate in the second quarter of fiscal 2014 was 36%, compared to 29% in the comparable period in fiscal 2013, and differs from the U.S. federal statutory rate due primarily to (i) the impact of U.S. state and local taxes, (ii) domestic production activities deduction, (iii) application of tax credits, and (iv) the decrease in the reserve for uncertain tax positions.

The second quarter of fiscal 2014 does not reflect the research credit compared to the similar period in fiscal 2013 as the research credit expired at December 31, 2013.

Income from Continuing Operations

Income from continuing operations, net of tax was $1.5 million, or 5.2% of net sales, during the second quarter of fiscal 2014, compared to $1.8 million, or 6.3% of net sales, in the comparable period in fiscal 2013.

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(Loss) from Discontinued Operations

Loss from discontinued operations, net of tax, was $0.1 million during the second quarter of fiscal 2014, compared to loss from discontinued operations, net of tax, of $0.3 million in the comparable period of fiscal 2013. This line item consists of income from discontinued operations related to ASC and the Repair Group.

Net Income

Net income remained the same at $1.4 million, or 4.9% of net sales, during the second quarter of fiscal 2014, compared to net income of $1.4 million, or 5.1% of net sales, in the comparable period in fiscal 2013.

B. Liquidity and Capital Resources

Cash and cash equivalents was $4.5 million for both March 31, 2014 and September 30, 2013. At March 31, 2014, essentially all of the $4.5 million of the Company’s cash and cash equivalents were in the possession of its non-operating Irish subsidiary. Distributions from the Company’s Irish subsidiary to the Company may be subject to statutory restriction, adverse tax consequences or other limitations.

The Company’s operating activities of continuing operations provided $8.5 million of cash in the first six months of fiscal 2014 compared with $1.1 million of cash used by operating activities of continuing operations in the first six months of fiscal 2013. The cash provided by operating activities of continuing operations in the first six months of fiscal 2014 was primarily due to net income of $2.4 million and $3.5 million from the impact of such non-cash items as depreciation and amortization expense and equity based compensation expense. These items were increased by a $2.3 million increase in net operating assets, primarily consisting of a $2.6 million decrease in accounts receivable; a $2.9 million increase in inventories; a $4.9 million increase in accounts payable; and a $2.3 million decrease in accrued liabilities and accrued taxes. These changes were due to factors resulting from normal business conditions of the Company, including (i) to support growth in business, (ii) the relative timing of sales and collections from customers, and the relative timing of payments to suppliers and tax authorities.

Capital expenditures were $3.7 million in the first six months of fiscal 2014 compared with $1.6 million in the comparable period of fiscal 2013. In addition to the $3.7 million expended during the first six months of fiscal 2014, $4.5 million was committed as of March 31, 2014. The Company anticipates that total fiscal 2014 capital expenditures will be within the range of $12.0 to $13.0 million and will relate principally to the further enhancement of production and product offering capabilities and implementation of a new ERP system.

In the fourth quarter of fiscal 2013, the Company declared a special cash dividend of $0.20 per common share, which resulted in a cash expenditure of $1.1 million during first six months of fiscal 2014.

As described more fully in Note 9 to the unaudited consolidated condensed financial statements, the Company acquired GAF, a forging business, in July 2013 for approximately $4.4 million at closing payable in cash by drawing on its revolving credit facility.

In October 2011, the Company entered into an amendment to its existing credit agreement (the “Credit Agreement Amendment”) with its bank increasing the maximum borrowing amount from $30.0 million to $40.0 million, of which $10.0 million is a five (5) year term loan and $30.0 million is a five (5) year revolving loan, secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its Irish subsidiary. The term loan is repayable in quarterly installments of $0.5 million starting December 1, 2011.

The term loan has a variable interest rate based on LIBOR, which becomes an effective fixed rate of 2.9% after giving effect to an interest rate swap agreement. Borrowing under the revolving loan bears interest at a rate equal to LIBOR plus 0.75% to 1.75%, which percentage fluctuates based on the Company’s leverage ratio of outstanding indebtedness to EBITDA. The bank loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum leverage ratio and to maintain a minimum fixed charge coverage ratio. There is also a commitment fee ranging from 0.10% to 0.25% to be incurred on the unused balance. In November 2013, the Company repaid a non-interest bearing promissory note that was issued to the seller of QAF. The Company was in compliance with all applicable loan covenants as of March 31, 2014.

Future cash flows from the Company’s operations will be used to pay down amounts outstanding under the Company’s credit agreement. The Company believes it has adequate cash/liquidity available to finance its operations from the combination of (i) the Company’s expected cash flows from the operations and (ii) funds available under its existing credit agreement.

As described more fully in Note 10 to the unaudited consolidated condensed financial statements, the Company exited the Repair Group business in December 2013 and completed the divestiture of its ASC business segment in December 2012. In December

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2013, the Company received net cash proceeds of $1.0 million from the sale of the Repair Group's machinery and equipment. In December 2012, the Company received net cash proceeds of approximately $8.1 million from the sale of ASC, net of certain transaction fees. These proceeds were used to pay down the Company’s revolving loan. In conjunction with this divestiture, the Company’s ASC non-U.S. subsidiaries paid a $1.1 million cash dividend to the Company. Proceeds from this dividend were used to pay down the Company’s revolving loan during the first quarter of fiscal 2013.

Item 4. Controls and Procedures

As defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), disclosure controls and procedures are controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported on a timely basis, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. The Company’s disclosure controls and procedures include components of the Company’s internal control over financial reporting. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Management of the Company, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e) as of March 31, 2014 (the “Evaluation Date”). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures were effective. Accordingly, management has concluded that the unaudited consolidated condensed financial statements in this Form 10-Q fairly present, in all material respects, the Company’s financial position, results of operations and cash flows for the periods presented.

There were no changes to the Company’s internal controls over financial reporting during the quarter ended March 31, 2014, which would be expected to have a material effect on financial reporting.

Part II. Other Information

Item 6.(a) Exhibits

The following exhibits are filed with this report or are incorporated herein by reference to a prior filing in accordance with Rule 12b-32 under the Securities and Exchange Act of 1934 (Asterisk denotes exhibits filed with this report.).

Exhibit No.	Description
3.1	Third Amended Articles of Incorporation of SIFCO Industries, Inc., filed as Exhibit 3(a) of the Company’s Form 10-Q dated March 31, 2002, and incorporated herein by reference
*3.2	SIFCO Industries, Inc. Amended and Restated Code of Regulations dated January 28, 2014.
4.1	Credit and Security Agreement among Fifth Third Bank and SIFCO Industries, Inc. (and subsidiaries) dated December 10, 2010, filed as Exhibit 4.23 to the Company’s Form 8-K dated December 10, 2010 and incorporated herein by reference
4.2	First Amendment and Joinder to Credit and Security Agreement among Fifth Third Bank and SIFCO Industries, Inc. (and subsidiaries) dated October 28, 2011, filed as Exhibit 4.2 to the Company’s Form 8-K dated October 28, 2011 and incorporated herein by reference
4.3	Second Amendment and Joinder to Credit and Security Agreement among Fifth Third Bank and SIFCO Industries, Inc. (and subsidiaries) dated July 23, 2013, filed as Exhibit 4.3 to the Company’s Form 8-K dated July 23, 2013 and incorporated herein by reference
9.1	Voting Trust Agreement dated January 31, 2013, filed as Exhibit 9.1 to the Company’s Form 10-Q dated December 31, 2012 and incorporated herein by reference
10.1	SIFCO Industries, Inc. 1995 Stock Option Plan, filed as Exhibit 10(d) of the Company’s Form 10-Q dated March 31, 2002, and incorporated herein by reference

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Exhibit No.	Description
10.2	SIFCO Industries, Inc. 2007 Long-Term Incentive Plan, filed as Exhibit A of the Company’s Proxy and Notice of 2008 Annual Meeting to Shareholders dated December 14, 2007, and incorporated herein by reference
10.3	Letter Agreement between the Company and Jeffrey P. Gotschall, dated August 12, 2009 filed as Exhibit 10.1 of the Company’s Form 8-K dated August 12, 2009 and incorporated herein by reference 10.1 of the Company’s Form 8-K dated August 12, 2009 and incorporated herein by reference.
10.4	Amended and Restated Change in Control and Severance Agreement, between James P. Woidke and SIFCO Industries, Inc., dated April 27, 2010 filed as Exhibit 10.15 of the Company’s Form 8-K dated April 30, 2010, and incorporated herein by reference
10.5	Asset Purchase Agreement between T&W Forge, Inc and TWF Acquisition, LLC (a wholly-owned subsidiary of SIFCO Industries Inc.) dated December 10, 2010 filed as Exhibit 10.14 to the Company’s Form 8-K dated December 10, 2010, and incorporated herein by reference
10.6	Amendment No. 1 to the SIFCO Industries, Inc. 2007 Long-Term Incentive Plan, filed as Exhibit A of the Company’s Proxy and Notice of 2011 Annual Meeting to Shareholders dated December 15, 2010, and incorporated herein by reference
10.7	Asset Purchase Agreement between GEL Industries, Inc (DBA Quality Aluminum Forge) and Forge Acquisition, LLC (a wholly-owned subsidiary of SIFCO Industries Inc.) dated October 28, 2011, filed as Exhibit 10.16 to the Company’s Form 8-K dated October 28, 2011, and incorporated herein by reference
10.8	Separation Agreement between the Company and Frank Cappello, dated December 31, 2012, filed as Exhibit 10.1 to the Company’s Form 8-K dated January 3, 2013, and incorporated herein by reference
10.9	Change in Control Agreement between the Company and Catherine M. Kramer, dated November 1, 2013, filed as Exhibit 10.1 to the Company's Form 8-K dated November 1, 2013, and incorporated herein by reference
14.1	Code of Ethics, filed as Exhibit 14.1 of the Company’s Form 10-K dated September 30, 2003, and incorporated herein by reference
*31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) / 15d-14(a)
*31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) / 15d-14(a)
*32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350
*32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350
*101	The following financial information from SIFCO Industries, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 filed with the SEC on May 5, 2014, formatted in XBRL includes: (i) Consolidated Condensed Statements of Operations for the fiscal periods ended March 31, 2014 and 2013, (ii) Consolidated Condensed Statements of Comprehensive Income for the fiscal periods ended March 31, 2014 and 2013, (iii) Consolidated Condensed Balance Sheets at March 31, 2014 and September 30, 2013, (iv) Consolidated Condensed Statements of Cash Flow for the fiscal periods ended March 31, 2014 and 2013, and (iv) the Notes to the Consolidated Condensed Financial Statements.

19

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SIFCO Industries, Inc.
	(Registrant)
Date: May 5, 2014	/s/ Michael S. Lipscomb
	Michael S. Lipscomb
	President and Chief Executive Officer
	(Principal Executive Officer)
Date:May 5, 2014	/s/ Catherine M. Kramer
	Catherine M. Kramer
	Vice President-Finance and
	Chief Financial Officer
	(Principal Financial Officer)

20

EX-3.2

Exhibit 3.2

AMENDED AND RESTATED CODE OF REGULATIONS

----------------------------------------------------------------------------

(LAST AMENDED 1/28/14)

LOCATION

ARTICLE I.

The principal office of the Company shall be in the City of Cleveland, Cuyahoga County, Ohio. The Company may also have offices at such other places, within or without the State of Ohio, as the Board of Directors may designate.

MEETING OF SHAREHOLDERS

ARTICLE II.

All meetings of the shareholders shall be held at the principal office of the Company in the City of Cleveland, Ohio unless the Board of Directors designates some other place either within or without the State of Ohio and causes the notice thereof to so specify.

ARTICLE III.

The annual meeting of the shareholders for the election of directors and the consideration of the reports to be laid before such meeting shall be held on such date and at such hour during the fourth calendar month following the close of the fiscal year of the Company as may be designated by the Board of Directors, the Chairman of the Board of Directors or the President and specified in the notice of the meeting. Special meetings of the shareholders may be called at any time by the Chairman of the Board of Directors or by the President or by a majority of the members of the Board of Directors, acting with or without a meeting, or by persons who hold fifty percent (50%) or more of all of the shares outstanding and entitled to vote at such shareholders’ meeting. Upon request in writing delivered in person or by registered mail to the Chairman of the Board of Directors or to the Secretary by any persons entitled to call a meeting of shareholders and stating the purposes of such meeting, it shall be the duty of the officer receiving the request forthwith to cause a notice to be given, according to law and this Code of Regulations, of a meeting to be held at such time, not less than thirty (30) nor more than ninety (90) days after the receipt of such request, as such officer may fix, and if such notice shall not be given within thirty (30) days after the receipt by such officer of such request, the persons requesting such meeting may fix the time of such meeting and give notice thereof in the manner provided by law or this Code of Regulations or cause such notice to be so given by a designated representative.

ARTICLE IV.

A notice in writing of each annual or special meeting of the shareholders, stating the purpose or purposes of such meeting and the time when and the place where it is to be held, shall be served or mailed by the Secretary, or by any other person or persons authorized to give such notice, upon or to each shareholder entitled to vote at, or to receive notice of, such meeting not more than sixty (60) days nor less than ten (10) days prior to the date fixed for the holding of such meeting, and if mailed, such notice shall be addressed to each shareholder at his address as it appears upon the stock records of the Company.

ARTICLE V.

Each shareholder present in person or by proxy at any annual or special meeting of the shareholders shall be entitled to one vote for each voting share registered in his name at the close of business on the twenty-eighth (28th)

7881652 v1

day preceding the date of the meeting, unless a different record date shall be fixed by the Board of Directors as hereinafter in this Article V provided. The Board of Directors, by action taken at least thirty-five (35) days before the date fixed for any meeting of the shareholders, may fix a record date for the determination of the shareholders entitled to notice of and to vote at such meeting or any adjournment thereof, which shall not be a past date and which shall be not more than sixty (60) days nor less than twelve (12) days prior to the date fixed for such meeting, and which shall continue to be the record date for all adjournments thereof, even though such meeting is adjourned to a date more than sixty (60) days after the date of the original meeting, unless the Board of Directors shall fix another date, which shall not be a past date and which shall be a date not more than sixty (60) days nor less than twelve (12) days prior to the date of any adjourned meeting, as the record date for the determination of the shareholders entitled to notice of and to vote at such adjourned meeting and shall cause notice of such new record date and of the date of such adjourned meeting to be given, at least ten (10) days prior to the date of such adjourned meeting, to all shareholders entitled to notice in accordance with the new record date so fixed.

ARTICLE VI.

At any meeting of the shareholders, the holders of a majority of the shares of the Company issued and outstanding and entitled to vote thereat shall constitute a quorum for such meeting; provided, however, that no action required by law or by the Articles of Incorporation to be taken by a specified proportion of the voting power of the Company may be taken by a lesser proportion, and provided, further, that the shareholders present in person or by proxy at any meeting of the shareholders, though less than a quorum, may adjourn such meeting from time to time to reconvene at such time and at such place stated in the minutes, as shall be determined by the vote of the holders of shares, present in person or by proxy at such meeting, entitled to exercise a majority of the voting power of the shares represented at such meeting. No notice as to any such adjourned meeting need be given other than by announcement at the meeting at which such adjournment is taken.

ARTICLE VII.

The order of business of any shareholders’ meeting shall be determined by the meeting. The Chairman of the Board of Directors or, in his absence, the President of the Company shall preside at all shareholders’ meetings, and the Secretary, or, in the absence of the Secretary, the Assistant Secretary, of the Company shall act as Secretary of all shareholders’ meetings and record all votes and proceedings taken at such meetings in books to be kept for that purpose; provided, however, that, in case of the absence or disability of the Chairman of the Board of Directors and the President, or of a vacancy in their respective offices, the shareholders present, in person or by proxy, and entitled to vote at any meeting of the shareholders, shall elect a Chairman of such meeting by the vote of the holders of a majority of the voting shares represented at such meeting, and, in case of the absence or disability of the Secretary and of the Assistant Secretary, or of a vacancy in their respective offices, the shareholders present, in person or by proxy, and entitled to vote at any meeting of the shareholders, shall elect a Secretary of such meeting by the vote of the holders of a majority of the voting shares represented at such meeting.

DIRECTORS

ARTICLE VIII.

The Company shall have a board of directors of not less than six (6) nor more than nine (9) persons as may be determined by the affirmative vote of the holders of record of shares of the stock of the Company entitling them to exercise a majority of the voting power of the Company at an annual or special meeting called for the purpose of electing directors, and when so fixed such number shall continue to be the authorized number of directors until changed by the shareholders by a vote of the aforesaid or by the directors as hereinafter provided. In addition to the authority of the shareholders to fix or change the number of directors, the directors by majority vote of the directors in office, may change the number of directors and may fill any director’s office that is created by an increase in the number of directors. In case of any vacancy in the Board of Directors, the remaining directors, though less than a majority of the whole authorized number of directors, may, by a vote of the majority of their number, fill the vacancy for the unexpired term. A director need not be a shareholder of the Company.

2

At each annual meeting of shareholders, all directors will be elected for a one-year term. No director shall be removed without an affirmative vote of the holders of record of shares of the stock of the Company entitling them to exercise at least two-thirds of the voting power of the Company in favor of such removal. No individual director shall be removed in case the votes of a sufficient number of shares are cast against his removal which, if cumulatively voted in an election of the class of directors of which the director was a member, would be sufficient to elect at least one director.

Notwithstanding any other provision of these Regulations or any provision of law which might otherwise permit a lesser vote or no vote, but in addition to any affirmative vote of the holders of any particular class or series of stock required by law or these Regulations, the affirmative vote of the holders of record of shares of the stock of the Company entitling them to exercise at least two-thirds of the Company’s voting power shall be required to alter, amend or repeal this Article VIII of these Regulations.

POWERS AND DUTIES OF THE DIRECTORS

ARTICLE IX.

The Board of Directors shall have complete and absolute jurisdiction of all questions relating to the property, affairs, management and business of the Company, including the election, removal, appointment, tenure, duties and compensation of the officers of the Company. The Board of Directors, subject to repeal by the shareholders, may fix their own compensation. The Board shall meet at such times and places, within or without the State of Ohio, as they may from time to time determine, may adopt such by-laws for their government and may exercise all such powers and do all such things as may be lawfully exercised and done by the Company, subject only to its Articles, this Code of Regulations and the Constitution and Laws of the State of Ohio. The directors present at any directors’ meeting, though less than a majority, may adjourn such meeting from time to time, to reconvene without further notice at such time and place stated in the minutes as shall be determined at such meeting by a majority vote of the directors there present.

Without in anywise limiting the general powers by law or hereinabove conferred, and subject to the provisions of the Company’s Articles, the Board of Directors shall have the following express powers:

To purchase or otherwise acquire for the Company any property, rights or privileges which the Company is authorized to acquire at such prices, on such terms and conditions and for such considerations as the Board shall see fit, and, at its direction, to pay for any property, rights or privileges acquired by the Company either wholly or partly in money, stocks, debentures, securities, or other property, rights or privileges of the Company;

To sell, transfer, lease, mortgage, pledge or otherwise dispose of the Company’s property; to borrow money, and to issue the obligations of the Company therefore, and to secure the same by mortgage or pledge of all or any part of the property of the Company, real or personal, and to pledge or sell the same for such considerations and at such prices as the Board may deem expedient;

To prescribe the terms on which stock certificates and shares may be issued, and the manner in which and conditions upon which stock certificates and shares may be transferred;

To appoint and to remove or suspend any such officers, agents or employees as the Board may from time to time think proper, and to fix and determine, and from time to time, change the duties, powers, salaries and emoluments of such officers, agents or employees;

To determine who shall be authorized to sign on the Company’s behalf bills, notes, receipts, acceptances, endorsements, checks, releases, contracts, deeds, stock certificates and other documents;

To create an Executive Committee composed of members of the Board of Directors and to delegate to such Executive Committee such powers of the Board of Directors and to such extent as the Board of Directors may from time to time determine.

3

INDEMNIFICATION

ARTICLE IX-A.

(a) The Company shall indemnify any director or officer or any former director or officer of the Company and any person who is serving or has served at the request of the Company as a director, officer, or trustee of another corporation, joint venture, trust or other enterprise against expenses, including attorneys’ fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative or investigative, other than an action by or in the right of the Company, to which he was, is, or is threatened to be made a party by reason of the fact that he is or was such director, officer, or trustee, provided it is determined in the manner set forth in paragraph (c) of this Article that he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and that, with respect to any criminal action or proceeding, he had no reasonable cause to believe his conduct was unlawful.

(b) In the case of any threatened, pending or completed action or suit by or in the right of the Company, the Company shall indemnify each person indicated in paragraph (a) of this Section against expenses, including attorneys’ fees, actually and reasonably incurred in connection with the defense or settlement thereof, provided it is determined in the manner set forth in paragraph (c) of this Article that he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company except that no indemnification shall be made in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty of the Company unless and only to the extent that the court of common pleas or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability, but in view of all circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court of common pleas or such other court shall deem proper.

(c) The determinations referred to in paragraphs (a) and (b) of this Article shall be made (i) by a majority vote of a quorum consisting of directors of the Company who were not and are not parties to or threatened with any such action, suit or proceeding, or (ii) if such a quorum is not obtainable or if a majority vote of a quorum of disinterested directors so directs, in a written opinion by independent legal counsel other than an attorney, or a firm having associated with it an attorney, who has been retained by or who has performed services for the Company, or any person to be indemnified, within the past five years, or (iii) by the shareholders, or (iv) by the court of common pleas or the court in which such action, suit or proceeding was brought.

(d) Expenses, including attorneys’ fees, incurred in defending any action, suit, or proceeding referred to in paragraphs (a) and (b) of this Article, may be paid by the Company in advance of the final disposition of such action, suit, or proceeding as authorized by the directors in the specific case upon receipt of an undertaking by or on behalf of the director, officer, or trustee to repay such amount, unless it shall ultimately be determined that he is entitled to be indemnified by the Company as authorized in this Article.

(e) The indemnification provided by this Article shall not be deemed exclusive (i) of any other rights to which those seeking indemnification may be entitled under the articles, the regulations, any agreement, any insurance purchased by the Company, vote of shareholders or disinterested directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, or of (ii) the power of the Company to indemnify any person who is or was an employee or agent of the Company or of another corporation, joint venture, trust or other enterprise which he is serving or has served at the

4

request of the Company, to the same extent and in the same situations and subject to the same determinations as are hereinabove set forth with respect to a director, officer or trustee. As used in this paragraph (e) references to the “Company” include all constituent corporations in a consolidation or merger in which the Company or a predecessor to the Company by consolidation or merger was involved. The indemnification provided by this Article shall continue as to a person who has ceased to be a director, officer, or trustee and shall inure to the benefit of the heirs, executors, and administrators of such a person.

(f) The Company may purchase and maintain insurance on behalf of any person who or was a director, officer or employee or former director, officer or employee of the Company or any person who is serving or has served at the request of the Company as a director, officer or trustee of another corporation, joint venture, trust or other enterprise, insuring him against liability asserted against or incurred by him in any such capacity or arising out of his status as such whether or not the Company would have the power to indemnify him against such liability under this Article.

(g) The provisions of this Article shall apply to actions, suits and proceedings commenced or threatened after the adoption of this Article, whether arising from acts or omissions to act occurring before or after its adoption.

AMENDMENT

ARTICLE X.

The Company may amend, change or add to these Regulations for any lawful purpose (i) to the extent permitted by Chapter 1701 of the Ohio General Corporation Law, by the Directors or (ii) by the vote or written consent of the holders of record of shares entitling them to exercise a majority of the voting power of the Company in respect of such amendment, change or addition; provided, however, that if any such amendment, change or addition is adopted by written consent without a meeting of the shareholders, the Secretary shall enter any such amendment, change or addition in the records of the Company and provide a copy thereof to each shareholder of record who would have been entitled to vote thereon and did not participate in the adoption thereof in any manner provided for under Ohio law.

5

EX-31.1

Exhibit 31.1

CERTIFICATION

OF THE CHIEF EXECUTIVE OFFICER

RULE 13A-14(A) / 15D-14(A)

I, Michael S. Lipscomb, certify that:

1. I have read this Quarterly Report on Form 10-Q of SIFCO Industries, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation;

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2014	/s/ Michael S. Lipscomb
	Michael S. Lipscomb
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

OF THE CHIEF FINANCIAL OFFICER

RULE 13A-14(A) / 15D-14(A)

I, Catherine M. Kramer, certify that:

1. I have read this Quarterly Report on Form 10-Q of SIFCO Industries, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation;

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2014	/s/ Catherine M. Kramer
	Catherine M. Kramer
	Vice President – Finance and
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of SIFCO Industries, Inc. (“Company”) on Form 10-Q for the quarter ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (“Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 5, 2014
	/s/ Michael S. Lipscomb
	Michael S. Lipscomb
	President and Chief Executive Officer

This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by SIFCO Industries, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that SIFCO Industries, Inc. specifically incorporates it by reference.

A signed original of this written statement required by Section 906 has been provided to SIFCO Industries, Inc. and will be retained by SIFCO Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of SIFCO Industries, Inc. (“Company”) on Form 10-Q for the quarter ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (“Report”), the undersigned officer of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 5, 2014
	/s/ Catherine M. Kramer
	Catherine M. Kramer
	Vice President – Finance and
	Chief Financial Officer

This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by SIFCO Industries, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that SIFCO Industries, Inc. specifically incorporates it by reference.

A signed original of this written statement required by Section 906 has been provided to SIFCO Industries, Inc. and will be retained by SIFCO Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Summary of Activity Related to Uncertain Tax Positions (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at September 30, 2013	$ 177
Decrease due to tax positions effectively settled	(110)
Balance at March 31, 2014	$ 67

XML

Financial Results in Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from discontinued operations, net of tax			$ 292	$ (1,904)
ASC group
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales		0		2,727
Income (loss) before income tax provision		0		180
Income tax provision (benefit)		0		48
Income (loss) from operations, net of tax		0		132
Gain (loss) on sale of discontinued operations, net of tax		(34)		2,328
Income (loss) from discontinued operations, net of tax		(34)		2,460
Repair group
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales	0	1,590	1,339	2,846
Income (loss) before income tax provision	(136)	(495)	(467)	(937)
Income tax provision (benefit)	(51)	(195)	(175)	(381)
Income (loss) from discontinued operations, net of tax	$ (85)	$ (300)	$ (292)	$ (556)

XML

Expected Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Fiscal year 2014	$ 2,161
Fiscal year 2015	2,080
Fiscal year 2016	1,854
Fiscal year 2017	1,617
Fiscal year 2018	$ 1,596

XML

Business Acquisition (Tables)

6 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Pro forma results of operations

The following unaudited pro forma information presents a summary of the results of operations for the Company including GAF as if the acquisition had occurred on October 1, 2012:

	Three Months Ended March 31, 2013		Six Months Ended March 31, 2013
Net sales	$	29,376	$	58,219
Net income	$	1,455	$	4,813
Net income per share (basic)	$	0.27	$	0.90
Net income per share (diluted)	$	0.27	$	0.89

XML

Stock-Based Compensation - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period (in years)			10 years
2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period (in years)			10 years
Aggregate number of shares that may be awarded	600,000		600,000
Performance period (in years)			3 years
Stock options may be awarded (in shares)	283,000		283,000
Compensation expense related to performance and restricted shares awarded	$ 315	$ 188	$ 553	$ 367
Total unrecognized compensation cost related to performance and restricted shares awarded	$ 3,154		$ 3,154
Period of recognized compensation cost (in years)			2 years 6 months
2007 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares earned as percentage of initial target number shares awarded			150.00%
Outstanding share awards earned and issued at greater than the target number of shares			150.00%
Performance shares | 2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period (in years)			3 years
Awards forfeited (in shares)			45,000
Shares forfeited fair value (in dollars per share)			$ 16.03
Additional shares granted (in shares)			43,000
Additional shares granted fair value (in dollars per share)			$ 26.50
Additional shares granted, vesting period			2 years
Share granted (in shares)			68,000
Granted shares fair value (in dollars per share)			$ 26.50
Restricted shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period (in years)			1 year
Restricted shares | 2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period (in years)			1 year
Additional shares granted (in shares)			10,000
Additional shares granted fair value (in dollars per share)			$ 31.12
Share granted (in shares)			18,000
Granted shares fair value (in dollars per share)			$ 22.02

XML

Long-Term Debt - Additional Information (Detail) (USD $)	6 Months Ended			6 Months Ended		1 Months Ended		6 Months Ended	1 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Oct. 31, 2011 Revolving loan	Mar. 31, 2014 Revolving loan Minimum	Mar. 31, 2014 Revolving loan Maximum	Oct. 31, 2011 Credit Agreement Amendment	Oct. 31, 2011 Term loan	Mar. 31, 2014 Term loan	Oct. 31, 2011 Credit Facility Term One Credit Agreement Amendment	Oct. 31, 2011 Credit Facility Term Two Credit Agreement Amendment
Debt Instrument [Line Items]
Credit agreement, maximum borrowing amount			$ 30,000,000			$ 40,000,000
Proceeds from revolving credit agreement	17,027,000	26,725,000							10,000,000	30,000,000
Period of credit agreement (in years)									5 years	5 years
Percentage of stock of non-U.S. subsidiaries pledged						65.00%
Quarterly installments payment							$ 500,000
Quarterly installments payment starting date								Dec. 01, 2011
Libor-based variable interest rate of term loan								2.20%
Effective fixed rate on term loan								2.90%
Interest rate on revolving loan, percentage added to Libor				0.75%	1.75%
Interest rate	1.00%
Commitment fee				0.10%	0.25%
Promissory note payable period	2013-11
Imputed interest rate used to discount	2.00%

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Discontinued Operations, Assets Held for Sale, and Business Divestiture Narrative (Details) (Repair group, USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2014
Repair group
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Workforce reduction costs expected	$ 959
Workforce reduction costs incurred	274
Workforce reduction costs paid	$ 701

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Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company’s intangible assets by major asset class subject to amortization consist of:

March 31, 2014	Estimated Useful Life	Original Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Trade name	10 years	$	2,000	$	546	$	1,454
Non-compete agreement	5 years	1,600		828		772
Below market lease	5 years	900		595		305
Customer relationships	10 years	13,800		3,801		9,999
Order backlog	1 year	2,200		2,169		31
Transition services	< 1 year	23		23		—
Total intangible assets		$	20,523	$	7,962	$	12,561

September 30, 2013	Estimated Useful Life	Original Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Trade name	10 years	$	2,000	$	446	$	1,554
Non-compete agreement	5 years	1,600		668		932
Below market lease	5 years	900		505		395
Customer relationships	10 years	13,800		3,111		10,689
Order backlog	1 year	2,200		2,119		81
Transition services	< 1 year	23		23		—
Total intangible assets		$	20,523	$	6,872	$	13,651

The amortization expense on identifiable intangible assets for the six months ended March 31, 2014 and 2013 was $1,090 and $1,051, and $545 and $493 during the second quarter of fiscal 2014 and 2013, respectively. Amortization expense associated with the identified intangible assets is expected to be as follows:

	Amortization Expense
Fiscal year 2014	$	2,161
Fiscal year 2015	2,080
Fiscal year 2016	1,854
Fiscal year 2017	1,617
Fiscal year 2018	1,596

The Company’s goodwill is not being amortized and is subject to annual impairment tests. All of the goodwill is expected to be deductible for tax purposes. Changes in the net carrying amount of goodwill was as follows:

Balance at September 30, 2013	$	7,620
Goodwill purchase price adjustment	38
Balance at March 31, 2014	$	7,658

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Business Acquisition (Details) (General Aluminum Forgings, LLC, USD $) In Thousands, unless otherwise specified	0 Months Ended
	Jul. 23, 2013
General Aluminum Forgings, LLC
Business Acquisition [Line Items]
Purchase price for forging business and related operating assets	$ 4,400

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Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 5,072	$ 5,906
Work-in-process	8,351	7,049
Finished goods	7,952	5,385
Total inventories	$ 21,375	$ 18,340

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Summary of Significant Accounting Policies - Additional Information (Detail) (Interest Rate Swap [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Interest Rate Swap [Member]
Accounting Policies [Line Items]
Interest rate swap agreement amount	$ 5,000	$ 6,000

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Pro Forma Results of Operations (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended	6 Months Ended
	Mar. 31, 2013	Mar. 31, 2013
Business Combinations [Abstract]
Net sales	$ 29,376	$ 58,219
Net income	$ 1,455	$ 4,813
Net income per share (basic) (in dollars per share)	$ 0.27	$ 0.90
Net income per share (diluted) (in dollars per share)	$ 0.27	$ 0.89

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Inventories - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Inventory Disclosure [Abstract]
Percentage of inventories determined using LIFO method	43.80%	35.80%
Difference between cost of inventories if FIFO method had been used	$ 7,813	$ 7,977

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Intangible Assets by Major Class Subject to Amortization (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013
Finite-Lived Intangible Assets [Line Items]
Original Cost	$ 20,523	$ 20,523
Accumulated Amortization	7,962	6,872
Net Book Value	12,561	13,651
Trade name
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	10 years	10 years
Original Cost	2,000	2,000
Accumulated Amortization	546	446
Net Book Value	1,454	1,554
Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	5 years	5 years
Original Cost	1,600	1,600
Accumulated Amortization	828	668
Net Book Value	772	932
Below market lease
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	5 years	5 years
Original Cost	900	900
Accumulated Amortization	595	505
Net Book Value	305	395
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	10 years	10 years
Original Cost	13,800	13,800
Accumulated Amortization	3,801	3,111
Net Book Value	9,999	10,689
Order backlog
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	1 year	1 year
Original Cost	2,200	2,200
Accumulated Amortization	2,169	2,119
Net Book Value	31	81
Transition services
Finite-Lived Intangible Assets [Line Items]
Original Cost	23	23
Accumulated Amortization	23	23
Net Book Value	$ 0	$ 0
Maximum | Transition services
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	1 year	1 year

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Inventories

6 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of:

	March 31, 2014		September 30, 2013
Raw materials and supplies	$	5,072	$	5,906
Work-in-process	8,351		7,049
Finished goods	7,952		5,385
Total inventories	$	21,375	$	18,340

Inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) method for 43.8% and 35.8% of the Company’s inventories at March 31, 2014 and September 30, 2013, respectively. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories. If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $7,813 and $7,977 higher than reported at March 31, 2014 and September 30, 2013, respectively.

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 545	$ 493	$ 1,090	$ 1,051

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Components of Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Service cost	$ 30	$ 75	$ 61	$ 151
Interest cost	250	215	501	429
Expected return on plan assets	(393)	(372)	(786)	(744)
Amortization of prior service cost	0	2	0	4
Amortization of net loss	151	226	301	453
Settlement cost	50	191	125	191
Net periodic benefit cost	$ 88	$ 337	$ 202	$ 484

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Consolidated Condensed Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Net sales	$ 29,044	$ 28,004	$ 55,696	$ 55,448
Cost of goods sold	22,740	22,098	43,822	43,678
Gross profit	6,304	5,906	11,874	11,770
Selling, general and administrative expenses	3,444	2,957	6,902	6,498
Amortization of intangible assets	545	493	1,090	1,051
Loss (gain) on disposal of operating assets	0	3	(2)	(122)
Operating income	2,315	2,453	3,884	4,343
Interest income	(5)	(9)	(9)	(14)
Interest expense	51	79	136	185
Foreign currency exchange (gain) loss, net	(1)	(8)	6	0
Other income, net	(108)	(109)	(217)	(186)
Income from continuing operations before income tax provision	2,378	2,500	3,968	4,358
Income tax provision	867	731	1,303	1,412
Income from continuing operations	1,511	1,769	2,665	2,946
Income (loss) from discontinued operations, net of tax	(85)	(334)	(292)	1,904
Net income	$ 1,426	$ 1,435	$ 2,373	$ 4,850
Income per share from continuing operations
Basic (in dollars per share)	$ 0.28	$ 0.33	$ 0.49	$ 0.55
Diluted (in dollars per share)	$ 0.28	$ 0.33	$ 0.49	$ 0.55
Income (loss) per share from discontinued operations, net of tax
Basic (in dollars per share)	$ (0.02)	$ (0.06)	$ (0.05)	$ 0.36
Diluted (in dollars per share)	$ (0.02)	$ (0.06)	$ (0.05)	$ 0.35
Net income per share
Basic (in dollars per share)	$ 0.26	$ 0.27	$ 0.44	$ 0.91
Diluted (in dollars per share)	$ 0.26	$ 0.27	$ 0.44	$ 0.90
Weighted-average common shares outstanding (basic) (in shares)	5,407	5,364	5,393	5,353
Weighted-average common shares outstanding (diluted) (in shares)	5,423	5,404	5,415	5,398

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Components of Balance Sheet Accounts Classified as Assets and Liabilities Held for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Assets:
Receivables, net	$ 142	$ 1,067
Inventories, net	0	660
Deferred income taxes	42	317
Prepaid expenses and other current assets	0	15
Total current assets of business from discontinued operations	184	2,059
Assets Held-for-sale, Current	264	278
Property, plant and equipment, net	0	840
Other assets	6	32
Total noncurrent assets of business from discontinued operations	6	872
Liabilities:
Accounts payable	46	278
Accrued liabilities	0	808
Total current liabilities of business from discontinued operations	$ 46	$ 1,086

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Consolidated Condensed Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net income	$ 2,373	$ 4,850
Loss (income) from discontinued operations, net of tax	292	(1,904)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,358	2,825
Gain on disposal of operating assets	(2)	(122)
LIFO income	(164)	(407)
Share transactions under company stock plan	292	30
Other long-term liabilities	(26)	149
Deferred income taxes	41	(630)
Changes in operating assets and liabilities:
Receivables	2,617	(1,783)
Inventories	(2,871)	(2,150)
Accounts payable	4,850	(49)
Other accrued liabilities	(949)	(1,555)
Accrued income and other taxes	(1,258)	1,111
Other operating activities	(40)	(1,434)
Net cash provided by (used for) operating activities of continuing operations	8,513	(1,069)
Net cash provided by operating activities of discontinued operations	471	875
Cash flows from investing activities:
Proceeds from disposal of operating assets	0	125
Capital expenditures	(3,714)	(1,611)
Net cash used for investing activities of continuing operations	(3,714)	(1,486)
Net cash provided by investing activities of discontinued operations	950	8,470
Cash flows from financing activities:
Payments on long term debt	(3,393)	(1,000)
Proceeds from revolving credit agreement	17,027	26,725
Repayments of revolving credit agreement	(18,774)	(32,974)
Proceeds from Stock Options Exercised	4	0
Proceeds from exercise of stock options	(1,081)	(1,073)
Net cash used for financing activities of continuing operations	(6,217)	(8,322)
Increase (decrease) in cash and cash equivalents	3	(1,532)
Cash and cash equivalents at the beginning of the period	4,508	7,176
Cash and cash equivalents at the end of the period	4,511	5,644
Supplemental disclosure of cash flow information of continuing operations:
Cash paid for interest	(108)	(172)
Cash paid for income taxes, net	$ (1,268)	$ (2,241)

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Components of Accumulated Other Comprehensive Loss (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Equity [Abstract]
Foreign currency translation adjustment, net of tax	$ (5,851)	$ (5,851)
Retirement plan liability adjustment, net of tax	(3,564)	(3,866)
Interest rate swap agreement adjustment, net of tax	(9)	(26)
Total accumulated other comprehensive loss	$ (9,424)	$ (9,743)

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Long-Term Debt (Tables)

6 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule of components of long-term debt

Long-term debt consists of:

	March 31,   2014		September 30, 2013
Revolving credit agreement	1,634		$	3,381
Term loan	5,000		6,000
Promissory Note	—		2,392
	6,634		11,773
Less – current maturities	2,000		4,392
Total long-term debt	$	4,634	$	7,381

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Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Debt Instrument [Line Items]
Non current maturities	$ 6,634	$ 11,773
Less – current maturities	2,000	4,392
Total long-term debt	4,634	7,381
Revolving credit agreement
Debt Instrument [Line Items]
Non current maturities	1,634	3,381
Term loan
Debt Instrument [Line Items]
Non current maturities	5,000	6,000
Promissory Note
Debt Instrument [Line Items]
Non current maturities	$ 0	$ 2,392

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Retirement Benefit Plans (Tables)

6 Months Ended

Mar. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of components of net periodic benefit cost

The components of net periodic benefit cost of the Company’s defined benefit plans are as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Service cost	$	30		$	75		$	61		$	151
Interest cost	250			215			501			429
Expected return on plan assets	(393		)	(372		)	(786		)	(744		)
Amortization of prior service cost	—			2			—			4
Amortization of net loss	151			226			301			453
Settlement cost	50			191			125			191
Net periodic benefit cost	$	88		$	337		$	202		$	484

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Summary of Significant Accounting Policies

6 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

A. Principles of Consolidation

The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated.

The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements.

These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2013 Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year.

B. Net Income per Share

The Company’s net income per basic share has been computed based on the weighted-average number of common shares outstanding. Net income per diluted share reflects the effect of the Company’s outstanding stock options, restricted shares and performance shares under the treasury stock method. The dilutive effect of the Company’s stock options, restricted shares and performance shares were as follows:

	Three Months Ended   March 31,						Six Months Ended   March 31,
	2014			2013			2014			2013
Income from continuing operations	$	1,511		$	1,769		$	2,665		$	2,946
Income (loss) from discontinued operations, net of tax	(85		)	(334		)	(292		)	1,904
Net income	$	1,426		$	1,435		$	2,373		$	4,850
Weighted-average common shares outstanding (basic)	5,407			5,364			5,393			5,353
Effect of dilutive securities:
Stock options	—			1			—			1
Restricted shares	13			9			15			8
Performance shares	3			30			7			36
Weighted-average common shares outstanding (diluted)	5,423			5,404			5,415			5,398
Net income per share – basic
Continuing operations	$	0.28		$	0.33		$	0.49		$	0.55
Discontinued operations	(0.02		)	(0.06		)	(0.05		)	0.36
Net income	$	0.26		$	0.27		$	0.44		$	0.91
Net income per share – diluted:
Continuing operations	$	0.28		$	0.33		$	0.49		$	0.55
Discontinued operations	(0.02		)	(0.06		)	(0.05		)	0.35
Net income	$	0.26		$	0.27		$	0.44		$	0.90
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share	24			51			22			78

C. Derivative Financial Instruments

The Company uses an interest rate swap agreement to reduce risk related to variable-rate debt, which is subject to changes in market rates of interest. The interest rate swap is designated as a cash flow hedge. At March 31, 2014 and at September 30, 2013, the Company held one interest rate swap agreement with a notional amount of $5,000 and $6,000, respectively. Cash flows related to the interest rate swap agreement are included in interest expense. The Company’s interest rate swap agreement and its variable-rate term debt are based upon LIBOR. During the first six months of fiscal 2014, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note interest risk.

D. Reclassifications

Certain prior period amounts were reclassified to conform to the current consolidated financial statement presentation.

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Consolidated Condensed Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Net income	$ 1,426	$ 1,435	$ 2,373	$ 4,850
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	0	(1)	0	(285)
Retirement plan liability adjustment	153	329	302	558
Interest rate swap agreement adjustment	8	14	17	30
Comprehensive income	$ 1,587	$ 1,777	$ 2,692	$ 5,153

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated.

The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements.

These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2013 Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year.

Net Income per Share

Net Income per Share

The Company’s net income per basic share has been computed based on the weighted-average number of common shares outstanding. Net income per diluted share reflects the effect of the Company’s outstanding stock options, restricted shares and performance shares under the treasury stock method.

Derivative Financial Instruments

Derivative Financial Instruments

The Company uses an interest rate swap agreement to reduce risk related to variable-rate debt, which is subject to changes in market rates of interest. The interest rate swap is designated as a cash flow hedge. At March 31, 2014 and at September 30, 2013, the Company held one interest rate swap agreement with a notional amount of $5,000 and $6,000, respectively. Cash flows related to the interest rate swap agreement are included in interest expense. The Company’s interest rate swap agreement and its variable-rate term debt are based upon LIBOR. During the first six months of fiscal 2014, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note interest risk.

Reclassifications

Reclassifications

Certain prior period amounts were reclassified to conform to the current consolidated financial statement presentation.

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Document and Entity Information	6 Months Ended
	Mar. 31, 2014
Document Information [Line Items]
Entity Registrant Name	SIFCO INDUSTRIES INC
Entity Central Index Key	0000090168
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding	5,413,129
Trading Symbol	SIF

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Schedule of dilutive effect of company's stock options

The dilutive effect of the Company’s stock options, restricted shares and performance shares were as follows:

	Three Months Ended   March 31,						Six Months Ended   March 31,
	2014			2013			2014			2013
Income from continuing operations	$	1,511		$	1,769		$	2,665		$	2,946
Income (loss) from discontinued operations, net of tax	(85		)	(334		)	(292		)	1,904
Net income	$	1,426		$	1,435		$	2,373		$	4,850
Weighted-average common shares outstanding (basic)	5,407			5,364			5,393			5,353
Effect of dilutive securities:
Stock options	—			1			—			1
Restricted shares	13			9			15			8
Performance shares	3			30			7			36
Weighted-average common shares outstanding (diluted)	5,423			5,404			5,415			5,398
Net income per share – basic
Continuing operations	$	0.28		$	0.33		$	0.49		$	0.55
Discontinued operations	(0.02		)	(0.06		)	(0.05		)	0.36
Net income	$	0.26		$	0.27		$	0.44		$	0.91
Net income per share – diluted:
Continuing operations	$	0.28		$	0.33		$	0.49		$	0.55
Discontinued operations	(0.02		)	(0.06		)	(0.05		)	0.35
Net income	$	0.26		$	0.27		$	0.44		$	0.90
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share	24			51			22			78

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Consolidated Condensed Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 4,511	$ 4,508
Receivables, net of allowance for doubtful accounts of $297 and $481, respectively	22,194	24,811
Inventories, net	21,375	18,340
Deferred income taxes	987	987
Prepaid expenses and other current assets	2,336	1,767
Assets Held-for-sale, Current	264	278
Current assets of business from discontinued operations	184	2,059
Total current assets	51,851	52,750
Property, plant and equipment, net	31,081	29,632
Intangible assets, net	12,561	13,651
Goodwill	7,658	7,620
Other assets	1,279	1,240
Noncurrent assets of business from discontinued operations	6	872
Total assets	104,436	105,765
Current liabilities:
Current maturities of long-term debt	2,000	4,392
Accounts payable	11,661	6,773
Accrued liabilities	4,950	7,670
Current liabilities of business from discontinued operations	46	1,086
Total current liabilities	18,657	19,921
Long-term debt, net of current maturities	4,634	7,381
Deferred income taxes	1,774	1,733
Other long-term liabilities	4,370	4,717
Shareholders’ equity:
Serial preferred shares, no par value, authorized 1,000 shares	0	0
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares – 5,449 at March 31, 2014 and 5,407 at September 30, 2013	5,449	5,407
Additional paid-in capital	7,853	7,599
Retained earnings	71,123	68,750
Accumulated other comprehensive loss	(9,424)	(9,743)
Total shareholders’ equity	75,001	72,013
Total liabilities and shareholders’ equity	$ 104,436	$ 105,765

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Income Taxes

6 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its continuing operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first six months of fiscal 2014 was 33%, compared to 32% for the same period of fiscal 2013, and differs from the U.S. federal statutory rate due primarily to (i) the impact of U.S. state and local income taxes, (ii) a domestic production activities deduction, (iii) application of tax credits, and (iv) the decrease in the reserve for uncertain tax positions.

The effective rate for the first six months of fiscal 2014 reflects a $110 decrease in the reserve for uncertain tax positions, compared to the comparable period in fiscal 2013.

In September 2013, the Internal Revenue Service issued final regulations governing the income tax treatment of acquisitions, dispositions, and repairs of tangible property. Taxpayers are required to follow the new regulations in taxable years beginning on or after January 1, 2014.  Management is currently assessing the impact of the regulations and does not expect they will have a material impact on the Company’s consolidated financial statements.

The Company is subject to income taxes in the U.S. federal jurisdiction, and various states, local and non-U.S. jurisdictions. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2008.

At March 31, 2014 and September 30, 2013, the Company recorded liabilities of $67 and $177, respectively, for uncertain tax positions and any related interest and penalties. The Company classifies any interest and penalties related to uncertain tax positions in income tax expense. A summary of activity related to the Company’s uncertain tax positions is as follows:

Balance at September 30, 2013	$	177
Decrease due to tax positions effectively settled	(110		)
Balance at March 31, 2014	$	67

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Long-Term Debt

6 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consists of:

	March 31,   2014		September 30, 2013
Revolving credit agreement	1,634		$	3,381
Term loan	5,000		6,000
Promissory Note	—		2,392
	6,634		11,773
Less – current maturities	2,000		4,392
Total long-term debt	$	4,634	$	7,381

In October 2011, the Company entered into an amendment to its existing credit agreement (the “Credit Agreement Amendment”) with its bank increasing the maximum borrowing amount from $30,000 to $40,000, of which $10,000 is a five (5) year term loan and $30,000 is a five (5) year revolving loan, secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its Irish subsidiary. The term loan is repayable in quarterly installments of $500 starting December 1, 2011.

The term loan has a LIBOR-based variable interest rate that was 2.2% at March 31, 2014. This rate becomes an effective fixed rate of 2.9% after giving effect to an interest rate swap agreement.

Borrowing under the revolving loan bears interest at a rate equal to LIBOR plus 0.75% to 1.75%, which percentage fluctuates based on the Company’s leverage ratio of outstanding indebtedness to EBITDA. At March 31, 2014, the interest rate was 1.0%. The loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum leverage ratio and to maintain a minimum fixed charge coverage ratio. There is also a commitment fee ranging from 0.10% to 0.25% to be incurred on the unused balance. The Company was in compliance with all applicable loan covenants as of March 31, 2014.

In connection with the purchase of the forging business and substantially all related operating assets from GEL Industries, Inc. (DBA Quality Aluminum Forge) (“QAF”), the Company issued a non-interest bearing promissory note to the seller, which note was paid by the Company in November 2013. The imputed interest rate used to discount the note was 2.0% per annum.

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Income Taxes (Tables)

6 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Summary of activity related to uncertain tax positions

A summary of activity related to the Company’s uncertain tax positions is as follows:

Balance at September 30, 2013	$	177
Decrease due to tax positions effectively settled	(110		)
Balance at March 31, 2014	$	67

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Inventories (Tables)

6 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule for components of inventories

Inventories consist of:

	March 31, 2014		September 30, 2013
Raw materials and supplies	$	5,072	$	5,906
Work-in-process	8,351		7,049
Finished goods	7,952		5,385
Total inventories	$	21,375	$	18,340

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Business Acquisition

6 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Business Acquisition

Business Acquisition

On July 23, 2013, SIFCO Industries, Inc.'s subsidiary completed the purchase of the forging business and substantially all related operating assets from MW General, Inc. (DBA General Aluminium Forgings). The forging business is operated in General Aluminum Forgings, LLC's ("GAF") Colorado Springs, Colorado facility, which is leased. The purchase price for the business and related assets of GAF was approximately $4,400, after certain adjustments related principally to the final working capital level.

The GAF purchase transaction was accounted for under the purchase method of accounting. The Company has substantially completed the purchase accounting related to the GAF acquisition.

The results of operation of GAF are included in the Company’s unaudited consolidated condensed statements of operations for the three months ended and six months ended March 31, 2014. The following unaudited pro forma information presents a summary of the results of operations for the Company including GAF as if the acquisition had occurred on October 1, 2012:

	Three Months Ended March 31, 2013		Six Months Ended March 31, 2013
Net sales	$	29,376	$	58,219
Net income	$	1,455	$	4,813
Net income per share (basic)	$	0.27	$	0.90
Net income per share (diluted)	$	0.27	$	0.89

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Retirement Benefit Plans

6 Months Ended

Mar. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement Benefit Plans

Retirement Benefit Plans

The Company and certain of its subsidiaries sponsor defined benefit pension plans covering most of its employees. The components of net periodic benefit cost of the Company’s defined benefit plans are as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Service cost	$	30		$	75		$	61		$	151
Interest cost	250			215			501			429
Expected return on plan assets	(393		)	(372		)	(786		)	(744		)
Amortization of prior service cost	—			2			—			4
Amortization of net loss	151			226			301			453
Settlement cost	50			191			125			191
Net periodic benefit cost	$	88		$	337		$	202		$	484

Through March 31, 2014 and 2013, the Company has made contributions in the amount of $255 and $360, respectively to its defined benefit pension plans. The Company does not anticipate making any additional contributions to fund its defined benefit pension plans during the balance of fiscal 2014.

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Stock-Based Compensation

6 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

In previous periods, the Company awarded stock options under its shareholder approved 1995 Stock Option Plan (“1995 Plan”) and 1998 Long-term Incentive Plan (“1998 Plan”). No further options may be awarded under either the 1995 Plan or the 1998 Plan. The option exercise price is not less than fair market value on date of grant and options are exercisable no later than ten years from date of grant. All options awarded under both plans are fully vested as of March 31, 2014.

At March 31, 2014 and 2013, there was no unrecognized compensation cost related to the stock options granted under the Company’s stock option plans. There was no compensation expense related to stock options recognized in the six months ended March 31, 2014 and 2013. As of March 31, 2014, all options had been exercised.

The Company has awarded performance and restricted shares under its shareholder approved 2007 Long-Term Incentive Plan (“2007 Plan”). The aggregate number of shares that may be awarded under the 2007 Plan is 600 less any shares previously awarded and subject to an adjustment for the forfeiture of any unissued shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2007 Plan may be made in multiple forms including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such awards are exercisable no later than ten years from date of grant.

The performance shares that have been awarded under the 2007 Plan generally provide for the issuance of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the making of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 150% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives.

With respect to such performance shares, compensation expense is being accrued. During each future reporting period, such expense may be subject to adjustment based upon the Company's financial performance, which impacts the number of common shares that it expects to issue upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of grant. The vesting of such shares is determined at the end of the performance period.

During the first six months of fiscal 2014, the Company granted 68 performance share awards under the 2007 Plan with a grant date fair value of $26.50 per share. The shares vest over a three year performance period. The Company terminated one of its performance share awards under the 2007 Plan that consisted of 45 performance share awards with a fair value of $16.03 per share. The Company granted a replacement award for 43 performance shares under the 2007 Plan with a grant date fair value of $26.50 per share. The shares vest over a two year performance period.

The Company has awarded restricted shares to its Directors, Officers, and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one (1)  year.

During the first six months of fiscal 2014, the Company granted 18 restricted shares under the 2007 Plan with a grant date fair value of $22.02 per share. The Company granted an additional 10 restricted shares under the 2007 Plan with a grant date fair value of $31.12 per share. The shares vest over a one year service period.

If all outstanding share awards are ultimately earned and issued at the target number of shares, then at March 31, 2014 there are approximately 283 shares that remain available for award. If any of the outstanding share awards are ultimately earned and issued at greater than the target number of shares, up to a maximum of 150% of such target, then a fewer number of shares would be available for award.

Stock-based compensation under the 2007 Plan was $553 and $367 during the first six months of fiscal 2014 and 2013 and $315 and $188 during the second quarter of fiscal 2014 and 2013, respectively. As of March 31, 2014, there was $3,154 of total unrecognized compensation cost related to the performance and restricted shares awarded under the 2007 Plan. The Company expects to recognize this cost over the next 2.5 years.

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Discontinued Operations, Assets Held for Sale, and Business Divestiture

6 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations, Assets Held for Sale, and Business Divestiture

Discontinued Operations, Assets Held for Sale, and Business Divestiture

As part of the Company’s strategy to focus on its core competencies in the Aerospace and Energy ("A&E") market, the Company decided in the fourth quarter of 2013 to exit the Turbine Component Service and Repair ("Repair Group") business.

The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale at March 31, 2014 and September 30, 2013, respectively.

	March 31, 2014		September 30, 2013
Assets:
Receivables, net	$	142	$	1,067
Inventories, net	—		660
Deferred income taxes	42		317
Prepaid expenses and other current assets	—		15
Total current assets of business from discontinued operations	$	184	$	2,059
Current assets held for sale	$	264	$	278
Property, plant and equipment, net	$	—	$	840
Other assets	6		32
Total noncurrent assets of business from discontinued operations	$	6	$	872
Liabilities:
Accounts payable	46		278
Accrued liabilities	—		808
Total current liabilities of business from discontinued operations	$	46	$	1,086

As of March 31, 2014 and September 30, 2013, certain assets were recorded at the lower of carrying value or fair value.

The financial results of Repair Group included in discontinued operations were as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Net sales	$	—		$	1,590		$	1,339		$	2,846
Loss before income tax provision	(136		)	(495		)	(467		)	(937		)
Income tax benefit	(51		)	(195		)	(175		)	(381		)
Loss from discontinued operations, net of tax	$	(85	)	$	(300	)	$	(292	)	$	(556	)

As the Company exited the Repair Group, the Company recognized $959 in workforce reduction costs of which $274 was incurred in the first six months of fiscal 2014 and $701 was paid as of March 31, 2014.

On December 10, 2012, the Company completed the divestiture of its Applied Surface Concepts ("ASC") business. There were no assets or liabilities held for sale at March 31, 2014 and September 30, 2013.

The financial results of ASC included in discontinued operations were as follows:

	Three Months  Ended March 31, 2013			Six Months Ended March 31, 2013
Net sales	$	—		$	2,727
Income before income tax provision	—			180
Income tax provision	—			48
Income (loss) from operations, net of tax	—			132
Gain (loss) on sale of discontinued operations, net of tax	(34		)	2,328
Income (loss) from discontinued operations, net of tax	$	(34	)	$	2,460

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Goodwill and Intangible Assets Goodwill rollforward (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2014
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 7,620
Goodwill purchase price adjustment	38
Goodwill, end of period	$ 7,658

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Mar. 31, 2014

Equity [Abstract]

Schedule for components of accumulated other comprehensive loss

The components of accumulated other comprehensive loss are as follows:

	March 31, 2014			September 30, 2013
Foreign currency translation adjustment, net of tax	$	(5,851	)	$	(5,851	)
Retirement plan liability adjustment, net of tax	(3,564		)	(3,866		)
Interest rate swap agreement adjustment, net of tax	(9		)	(26		)
Total accumulated other comprehensive loss	$	(9,424	)	$	(9,743	)

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Discontinued Operations, Assets Held for Sale, and Business Divestiture (Tables)

6 Months Ended

Mar. 31, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule for components of balance sheet accounts classified as assets and liabilities held for sale

The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale at March 31, 2014 and September 30, 2013, respectively.

	March 31, 2014		September 30, 2013
Assets:
Receivables, net	$	142	$	1,067
Inventories, net	—		660
Deferred income taxes	42		317
Prepaid expenses and other current assets	—		15
Total current assets of business from discontinued operations	$	184	$	2,059
Current assets held for sale	$	264	$	278
Property, plant and equipment, net	$	—	$	840
Other assets	6		32
Total noncurrent assets of business from discontinued operations	$	6	$	872
Liabilities:
Accounts payable	46		278
Accrued liabilities	—		808
Total current liabilities of business from discontinued operations	$	46	$	1,086

Repair group

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of financial results in discontinued operations

The financial results of Repair Group included in discontinued operations were as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Net sales	$	—		$	1,590		$	1,339		$	2,846
Loss before income tax provision	(136		)	(495		)	(467		)	(937		)
Income tax benefit	(51		)	(195		)	(175		)	(381		)
Loss from discontinued operations, net of tax	$	(85	)	$	(300	)	$	(292	)	$	(556	)

ASC group

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of financial results in discontinued operations

There were no assets or liabilities held for sale at March 31, 2014 and September 30, 2013.

The financial results of ASC included in discontinued operations were as follows:

	Three Months  Ended March 31, 2013			Six Months Ended March 31, 2013
Net sales	$	—		$	2,727
Income before income tax provision	—			180
Income tax provision	—			48
Income (loss) from operations, net of tax	—			132
Gain (loss) on sale of discontinued operations, net of tax	(34		)	2,328
Income (loss) from discontinued operations, net of tax	$	(34	)	$	2,460

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Retirement Benefit Plans - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Contributions amount in defined benefit pension plans	$ 255	$ 360
Anticipated additional contributions in defined benefit pension plans	$ 0

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Consolidated Condensed Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Receivables, allowance for doubtful accounts	$ 297	$ 481
Serial preferred shares, no par value (in dollars per share)	$ 0	$ 0
Serial preferred shares, number of shares authorized	1,000,000	1,000,000
Common shares, par value (in dollars per share)	$ 1	$ 1
Common shares, number of shares authorized	10,000,000	10,000,000
Common shares, number of shares issued	5,449,000	5,407,000
Common shares, number of shares outstanding	5,449,000	5,407,000

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Accumulated Other Comprehensive Loss

6 Months Ended

Mar. 31, 2014

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows:

	March 31, 2014			September 30, 2013
Foreign currency translation adjustment, net of tax	$	(5,851	)	$	(5,851	)
Retirement plan liability adjustment, net of tax	(3,564		)	(3,866		)
Interest rate swap agreement adjustment, net of tax	(9		)	(26		)
Total accumulated other comprehensive loss	$	(9,424	)	$	(9,743	)

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Dilutive Effect of Company's Stock Options Restricted Shares and Performance Shares (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Income from continuing operations	$ 1,511	$ 1,769	$ 2,665	$ 2,946
Income (loss) from discontinued operations, net of tax	(85)	(334)	(292)	1,904
Net income	$ 1,426	$ 1,435	$ 2,373	$ 4,850
Weighted-average common shares outstanding (basic) (in shares)	5,407	5,364	5,393	5,353
Weighted-average common shares outstanding (diluted) (in shares)	5,423	5,404	5,415	5,398
Net income per share – basic
Continuing operations (in dollars per share)	$ 0.28	$ 0.33	$ 0.49	$ 0.55
Discontinued operations (in dollars per share)	$ (0.02)	$ (0.06)	$ (0.05)	$ 0.36
Net income (in dollars per share)	$ 0.26	$ 0.27	$ 0.44	$ 0.91
Net income per share – diluted:
Continuing operations (in dollars per share)	$ 0.28	$ 0.33	$ 0.49	$ 0.55
Discontinued operations (in dollars per share)	$ (0.02)	$ (0.06)	$ (0.05)	$ 0.35
Net income (in dollars per share)	$ 0.26	$ 0.27	$ 0.44	$ 0.90
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares)	24	51	22	78
Stock options
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Effect of dilutive securities (in shares)	0	1	0	1
Restricted shares
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Effect of dilutive securities (in shares)	13	9	15	8
Performance shares
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Effect of dilutive securities (in shares)	3	30	7	36

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Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Effective tax rate	33.00%	32.00%
Liabilities recorded for uncertain tax positions and related interest and penalties	$ 67		$ 177
Decrease in reserves for uncertain tax positions	$ 110

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets by major class subject to amortization

The Company’s intangible assets by major asset class subject to amortization consist of:

March 31, 2014	Estimated Useful Life	Original Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Trade name	10 years	$	2,000	$	546	$	1,454
Non-compete agreement	5 years	1,600		828		772
Below market lease	5 years	900		595		305
Customer relationships	10 years	13,800		3,801		9,999
Order backlog	1 year	2,200		2,169		31
Transition services	< 1 year	23		23		—
Total intangible assets		$	20,523	$	7,962	$	12,561

September 30, 2013	Estimated Useful Life	Original Cost		Accumulated Amortization		Net Book Value
Intangible assets:
Trade name	10 years	$	2,000	$	446	$	1,554
Non-compete agreement	5 years	1,600		668		932
Below market lease	5 years	900		505		395
Customer relationships	10 years	13,800		3,111		10,689
Order backlog	1 year	2,200		2,119		81
Transition services	< 1 year	23		23		—
Total intangible assets		$	20,523	$	6,872	$	13,651

Schedule of expected amortization expense

Amortization expense associated with the identified intangible assets is expected to be as follows:

	Amortization Expense
Fiscal year 2014	$	2,161
Fiscal year 2015	2,080
Fiscal year 2016	1,854
Fiscal year 2017	1,617
Fiscal year 2018	1,596

Schedule of goodwill activity for period end

Changes in the net carrying amount of goodwill was as follows:

Balance at September 30, 2013	$	7,620
Goodwill purchase price adjustment	38
Balance at March 31, 2014	$	7,658