Business Segments

12 Months Ended

Sep. 30, 2012

Business Segments [Abstract]

Business Segments

11. Business Segments

The Company identifies reportable segments based upon distinct products manufactured and services performed. The Forged Components Group (“Forge Group”) consists of the production, heat-treatment, surface-treatment, non-destructive testing and some machining of both conventional and precision forged components in various steel, titanium and aluminum alloys utilizing a variety of processes for application principally in the aerospace and power generation industries. The Turbine Component Services and Repair Group (“Repair Group”) consists primarily of the repair and remanufacture of small aerospace and industrial turbine engine components, and is also involved in providing precision component machining and industrial coating of turbine engine components. The Applied Surface Concepts Group (“ASC Group”) is a provider of specialized selective plating processes and services used to apply metal coatings to a selective area of a component. The Company’s reportable segments are separately managed.

One customer of all three of the Company’s segments accounted for 14% and 10% of the Company’s consolidated net sales in fiscal 2012 and 2011, respectively. One customer of two of the Company’s segments in fiscal 2012 and three of the Company’s segments in fiscal 2011 accounted for 14% and 19% of the Company’s consolidated net sales in 2012 and 2011, respectively. One customer of two of the Company’s segments in fiscal 2012 and one of the Company’s segments in fiscal 2011accounted for 10% and 12% of the Company’s consolidated net sales in fiscal 2012 and 2011, respectively. The combined net sales to these three customers, and to the direct subcontractors to these three customers, accounted for 48% and 59% of the Company’s consolidated net sales in fiscal 2012 and 2011, respectively.

Geographic net sales are based on location of customer. The United States of America is the single largest country for unaffiliated customer sales, accounting for 78% and 80% of consolidated net sales in fiscal 2012 and 2011, respectively. No other single country represents greater than 10% of consolidated net sales in fiscal 2012 and 2011. Net sales to unaffiliated customers located in various European countries accounted for 9% and 8% of consolidated net sales in fiscal 2012 and 2011, respectively. Net sales to unaffiliated customers located in various Asian countries accounted for 5% and 6% of consolidated net sales in fiscal 2012 and 2011, respectively.

Corporate unallocated expenses represent expenses that are not of a business segment operating nature and, therefore, are not allocated to the business segments for reporting purposes. Corporate identifiable assets consist primarily of cash and cash equivalents, and the Company’s Cork, Ireland facility.

The following table summarizes certain information regarding segments of the Company’s:

	Years Ended September 30,
	2012			2011
Net sales:
Forged Components Group	$	102,900		$	84,145
Turbine Component Services and Repair Group		7,184			9,047
Applied Surface Concepts Group		15,022			14,165
Consolidated net sales	$	125,106		$	107,357
Operating income (loss):
Forged Components Group	$	12,938		$	13,000
Turbine Component Services and Repair Group		(1,416	)		(277	)
Applied Surface Concepts Group		1,064			1,025
Corporate unallocated expenses		(3,240	)		(2,893	)
Consolidated operating income		9,346			10,855
Interest expense, net		438			82
Foreign currency exchange loss (gain), net		(25	)		5
Other income, net		(467	)		(470	)
Consolidated income before income tax provision	$	9,400		$	11,238
Depreciation and amortization expense:
Forged Components Group	$	5,855		$	3,542
Turbine Component Services and Repair Group		341			308
Applied Surface Concepts Group		379			426
Corporate unallocated expenses		96			110
Consolidated depreciation and amortization expense	$	6,671		$	4,386
LIFO expense for the Forged Components Group	$	1,563		$	479
Capital expenditures:
Forged Components Group	$	2915		$	2,798
Turbine Component Services and Repair Group		410			219
Applied Surface Concepts Group		196			276
Consolidated capital expenditures	$	3,521		$	3,293
Identifiable assets:
Forged Components Group	$	84,519		$	58,361
Turbine Component Services and Repair Group		3,480			3,758
Applied Surface Concepts Group		6,437			6,217
Corporate		12,109			11,675
Consolidated total assets	$	106,545		$	80,011
Non-U.S. subsidiaries:
Net sales	$	5,612		$	5,010
Operating income		470			369
Identifiable assets (excluding cash)		4,511			4,422