Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting Disclosure [Text Block]

14. Segment Reporting

The Company has two division segments based on the products it delivers:

Heavy Duty Diesel Systems division— The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions.  This division offers a full range of products for the verified retrofit and OEM markets through its distributor/dealer network and direct sales. These products are used to reduce exhaust emissions created by on-road, off-road and stationary diesel and alternative fuel engines including propane and natural gas. The retrofit market in the U.S. is driven in particular by state and municipal environmental regulations and incentive funding for voluntary early compliance. The Heavy Duty Diesel Systems division derives significant revenues from retrofit with a portfolio of solutions verified by the California Air Resources Board and the United States Environmental Protection Agency.

Catalyst division— The Catalyst division produces catalyst formulations to reduce emissions from gasoline, diesel and natural gas combustion engines that are offered for multiple markets and a wide range of applications.  A family of unique high-performance catalysts has been developed — with base-metals or low platinum group metal and zero platinum group metal content — to provide increased catalytic function and value for technology-driven automotive industry customers. The Catalyst division’s technical and manufacturing competence in the light duty vehicle market is aimed at meeting auto makers’ most stringent requirements, and it has supplied over ten million parts to light duty vehicle customers since 1996. The Catalyst division also provides catalyst formulations for the Company’s Heavy Duty Diesel Systems division. Intersegment revenues are based on market prices.

Corporate — Corporate includes cost for personnel, insurance and public company expenses such as legal, audit and taxes that are not allocated down to the operating divisions.

Discontinued operations— In 2006, the Company purchased AUS, a provider of cost-effective, engineered solutions for the clean and efficient utilization of fossil fuels. AUS, referred to as the Company’s Energy Systems division, provided emissions control and energy systems solutions for industrial and utility boilers, process heaters, gas turbines and generation sets used largely by major utilities, industrial process plants, OEMs, refineries, food processors, product manufacturers and universities. The Energy Systems division delivered integrated systems built for customers’ specific combustion processes. As discussed in Note 15, this division was sold on October 1, 2009.

        Summarized financial information for the Company’s reportable segments is as follows (in thousands):

	Three  Months Ended March 31,
	2013	2012
Net sales
Heavy Duty Diesel Systems	$   7,284	$  12,601
Catalyst	6,456	6,104
Corporate	─	─
Eliminations (1)	(433)	(1,706)
Total	$  13,307	$  16,999
(Loss) income from operations
Heavy Duty Diesel Systems	$     (337)	$     (364)
Catalyst	121	(332)
Corporate	(1,817)	(1,688)
Eliminations (1)	39	(41)
Total	$   (1,994)	$  (2,425)

(1) Elimination of Catalyst revenue and profit in ending inventory related to sales to Heavy Duty Diesel Systems.

        Net sales by geographic region based on the location of sales organization is as follows (in thousands):

	Three Months Ended  March 31,
	2013	2012
United States	$    6,968	$  5,999
Canada	4,836	4,923
United Kingdom	301	4,321
Sweden	1,202	1,756
Total	$  13,307	$ 16,999