Business Segments

6 Months Ended

Jun. 25, 2011

Business Segments

Business Segments

7. Business Segments

        The Company aggregates its operating segments into four reportable segments. Aggregation is based on similarity of operating segments as to economic characteristics, products, production processes, types or classes of customer and the methods of distribution. Net corporate expense is net of certain service-related expenses that are allocated to business units generally on the basis of employee headcounts and sales dollars.

        Reportable segments are as follows:

        ENGINEERED INFRASTRUCTURE PRODUCTS:    This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, roadway safety and access systems applications;

        UTILITY SUPPORT STRUCTURES:    This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry;

        COATINGS:    This segment consists of galvanizing, anodizing and powder coating services on a global basis; and

        IRRIGATION:    This segment consists of the manufacture of agricultural irrigation equipment and related parts and services for the global agricultural industry.

        In addition to these four reportable segments, the Company has other businesses and activities that individually are not more than 10% of consolidated sales. These include the manufacture of forged steel grinding media for the mining industry, tubular products for industrial customers, the electrolytic manganese dioxide for disposable batteries and the distribution of industrial fasteners and are reported in the "Other" category.

        In the fourth quarter of 2010, the Company reorganized its segment reporting structure to reflect the management structure as a result of the acquisition of Delta plc. The main business units of Delta are organized as follows in the reportable segment structure:

• •

  Engineered Infrastructure Products segment includes Delta's lighting, communication, access systems and roadway safety products;

  •

  Coatings segment includes Delta's galvanizing operations in the U.S., Australia and Asia;

  •

  Delta's forged steel grinding media and electrolytic manganese dioxide operations are included an "Other", and;

  •

  Delta's management administration expenses are included in "Net corporate expense".

        Fiscal 2010 figures have been reclassified to conform to the fiscal 2011 presentation.

        The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its business segments based upon operating income and invested capital. The Company does not allocate interest expense, non-operating income and deductions, or income taxes to its business segments.

				Thirteen Weeks Ended						Twenty-six Weeks Ended
				June 25, 2011			June 26, 2010			June 25, 2011			June 26, 2010
Sales:
	Engineered Infrastructure Products segment:
		Lighting & Traffic		$	145,538		$	117,375		$	262,849		$	205,486
		Communication Structures			28,297			28,248			48,720			47,143
		Access Systems			32,582			17,729			63,778			17,729
			Engineered Infrastructure Products segment		206,417			163,352			375,347			270,358
	Utility Support Structures segment
		Steel			123,221			101,834			233,119			200,907
		Concrete			13,339			13,004			29,088			27,159
			Utility Support Structures segment		136,560			114,838			262,207			228,066
	Coatings segment				84,161			54,441			157,611			82,371
	Irrigation segment				183,701			112,159			334,749			220,798
	Other				84,121			47,996			158,107			70,285
		Total			694,960			492,786			1,288,021			871,878
Intersegment Sales:
	Engineered Infrastructure Products segment				5,480			674			11,424			1,776
	Utility Support Structures segment				1,951			336			2,259			635
	Coatings segment				10,926			6,453			22,431			12,217
	Irrigation segment				5			3			8			6
	Other				7,989			3,761			15,341			8,283
		Total			26,351			11,227			51,463			22,917
Net Sales:
	Engineered Infrastructure Products segment				200,937			162,678			363,923			268,582
	Utility Support Structures segment				134,609			114,502			259,948			227,431
	Coatings segment				73,235			47,988			135,180			70,154
	Irrigation segment				183,696			112,156			334,741			220,792
	Other				76,132			44,235			142,766			62,002
		Total		$	668,609		$	481,559		$	1,236,558		$	848,961
Operating Income (Loss):
	Engineered Infrastructure Products segment			$	11,515		$	12,082		$	13,718		$	14,693
	Utility Support Structures segment				12,984			12,542			26,483			27,248
	Coatings segment				15,070			9,884			25,362			14,416
	Irrigation segment				32,964			16,596			56,858			31,994
	Other				11,380			8,708			20,294			12,972
	Net corporate expense				(15,294	)		(22,511	)		(28,795	)		(32,372	)
		Total		$	68,619		$	37,301		$	113,920		$	68,951