SEGMENT REPORTING

6 Months Ended

Jun. 30, 2012

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 14 — SEGMENT REPORTING

The Company is organized into reporting segments based on the nature of the products and services offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker. The Company’s segments and their product and service offerings are summarized below:

Towers and Weldments

The Company manufactures towers for wind turbines, specifically the large and heavier wind towers that are designed for 2 megawatt (“MW”) and larger wind turbines. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of approximately 500 towers, sufficient to support turbines generating more than 1,200 MW of power. This product segment also encompasses the manufacture of specialty fabrications and specialty weldments for mining and other industrial customers. Consistent with the Company’s diversification strategy, during 2012 a portion of the Company’s tower capacity has been shifted to support the growing demand for specialty weldments.

Gearing

The Company engineers, builds and remanufactures precision gears and gearing systems for oil and gas, wind, mining and other industrial applications. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment in Neville Island, Pennsylvania.

Services

The Company offers a comprehensive range of services, primarily to wind farm developers and operators. The Company specializes in non-routine maintenance services for both kilowatt and megawatt turbines. The Company also offers comprehensive field services to the wind industry. The Company is increasingly focusing its efforts on the identification and/or development of product and service offerings which will improve the reliability and efficiency of wind turbines, and therefore enhance the economic benefits to its customers. The Company provides wind services across the U.S., with primary service locations in South Dakota and Texas. In February 2011, the Company put into operation its dedicated drivetrain service center in Abilene, Texas, which is focused on servicing the growing installed base of MW wind turbines as they come off warranty and, to a limited extent, industrial gearboxes requiring precision repair and testing.

Corporate and Eliminations

“Corporate” includes the assets and selling, general and administrative expenses of the Company’s corporate office. “Eliminations” is comprised of adjustments to reconcile segment results to consolidated results.

Summary financial information by reportable segment for the three and six months ended June 30, 2012 and 2011 was as follows:

For the Three Months Ended June 30, 2012:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	36,995	$	13,646		$	5,670		$	—		$	—		$	56,311
Intersegment revenues (1)	—		417			25			—			(442		)	—
Operating profit (loss)	561		(1,632		)	(1,139		)	(1,960		)	11			(4,159		)
Depreciation and amortization	904		2,550			439			17			—			3,910
Capital expenditures	382		399			658			11			—			1,450

For the Three Months Ended June 30, 2011:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	24,495	$	12,506		$	2,331		$	—		$	—		$	39,332
Intersegment revenues (1)	—		3			36			—			(39		)	—
Operating profit (loss)	2,773		(2,847		)	(2,094		)	(2,143		)	—			(4,311		)
Depreciation and amortization	887		2,506			326			43			—			3,762
Capital expenditures	84		(560		)	926			20			—			470

For the Six Months Ended June 30, 2012:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	72,164	$	29,479		$	9,111		$	—		$	—		$	110,754
Intersegment revenues (1)	—		617			26			—			(643		)	—
Operating profit (loss)	1,566		(2,753		)	(2,763		)	(4,175		)	25			(8,100		)
Depreciation and amortization	1,780		5,222			824			34			—			7,860
Capital expenditures	413		764			900			88			—			2,165

For the Six Months Ended June 30, 2011:	Towers and Weldments		Gearing			Services			Corporate			Eliminations			Consolidated
Revenues from external customers	$	52,666	$	26,037		$	4,159		$	—		$	—		$	82,862
Intersegment revenues (1)	—		25			36			—			(61		)	—
Operating profit (loss)	5,194		(5,242		)	(3,448		)	(4,788		)	—			(8,284		)
Depreciation and amortization	1,766		5,028			382			87			—			7,263
Capital expenditures	189		(298		)	2,921			38			—			2,850

	Total Assets as of
	June 30,			December 31,
Segments:	2012			2011
Towers and Weldments	$	77,344		$	68,185
Gearing	80,212			80,642
Services	15,822			15,752
Assets held for sale	8,047			8,052
Corporate	312,468			317,413
Eliminations	(319,325		)	(317,153		)
	$	174,568		$	172,891

(1)Intersegment revenues generally include a 10% markup over costs and primarily consist of sales from Gearing to Services. Gearing sales to Services totaled $617 and $25 for the six months ended June 30, 2012 and 2011, respectively.