SEGMENT REPORTING

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

Note 10. SEGMENT REPORTING

Note 10. SEGMENT REPORTING

In accordance with FASB ASC 280, “Segment Reporting”, the Company discloses financial and descriptive information about its reportable operating segments. Operating segments are components of an enterprise about which separate financial information is available and regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company is operating in three segments. AIM manufactures components and subassemblies for the defense and aerospace industry. NTW is a manufacturer of aerospace components, principally landing gear for F-16 and F-18 fighter aircraft. WMI provides specialty welding services and metal fabrications to the defense and commercial aerospace industry. While each of these segments service the same industries and a similar customer base, we evaluate the performance of each segment separately in deciding how to allocate resources and in accessing profitability.

Beginning on January 1, 2013, the Company began to allocate all of the corporate selling and general and administrative costs of AIRI to each of its three subsidiaries. For both 2014 and 2013, these are allocated 50% to AIM and 25% to each of WMI and NTW.

Financial information about the Company's operating segments for the three months ended March 31, 2014 and 2013 are as follows:

Three Months Ended March 31,
		2014	2013
		(Unaudited)	(Unaudited)
AIM
	Net Sales	$     7,131,000	$     7,478,000
	Gross Profit	1,285,000	1,460,000
	Pre Tax Income	328,000	493,000
	Assets	21,635,000	23,871,000
WMI
	Net Sales	3,313,000	3,139,000
	Gross Profit	838,000	849,000
	Pre Tax Loss	(331,000)	(11,000)
	Assets	12,547,000	9,796,000
NTW
	Net Sales	5,009,000	3,708,000
	Gross Profit	1,922,000	1,338,000
	Pre Tax Income	1,020,000	493,000
	Assets	14,337,000	13,563,000
Corporate
	Net Sales	-	-
	Gross Profit	-	-
	Pre Tax Loss	(92,000)	(207,000)
	Assets	8,156,000	12,256,000
Consolidated
	Net Sales	15,453,000	14,325,000
	Gross Profit	4,045,000	3,647,000
	Pre Tax Income	925,000	768,000
	Provision for Taxes	584,000	489,000
	Net Income	341,000	279,000
	Elimination of Assets	(2,121,000)	(8,064,000)
	Assets	54,554,000	51,422,000