Business Segments

9 Months Ended

Sep. 30, 2019

The Company is a leading manufacturer and distributor of products and services for transportation and energy infrastructure with locations in North America and Europe. The Company is organized and operates in three different operating segments: the Rail Products and Services segment, the Construction Products segment, and the Tubular and Energy Services segment. The segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred; (b) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who makes decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. Operating segments are evaluated on their segment profit contribution to the Company's consolidated results. Other income and expenses, interest, income taxes, and certain other items are managed on a consolidated basis. The Company's segment accounting policies are the same as those described in Note 2. Business Segments of the Notes to the Company's Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year-ended December 31, 2018.

The following table illustrates the Company's revenues and profit from operations by segment for the periods indicated:


	Three Months Ended September 30, 2019						Three Months Ended September 30, 2018
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Products and Services	$	67,741	$	3,417	$	84,517	$	5,299
Construction Products	47,175		1,848		41,534		1,603
Tubular and Energy Services	39,360		2,230		41,043		4,274
Total	$	154,276	$	7,495	$	167,094	$	11,176

	Nine Months Ended September 30, 2019						Nine Months Ended September 30, 2018
	Net Sales		Segment Profit		Net Sales		Segment Profit
Rail Products and Services	$	244,836	$	14,815	$	238,571	$	12,655
Construction Products	139,926		6,095		112,641		4,478
Tubular and Energy Services	120,916		11,937		111,226		10,704
Total	$	505,678	$	32,847	$	462,438	$	27,837

Segment profit from operations, as shown above, includes allocated corporate operating expenses. Operating expenses related to corporate headquarter functions that directly support the segment activity are allocated based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments.

The following table provides a reconciliation of segment net profit from operations to the Company’s consolidated total:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018
Profit for reportable segments	$	7,495	$	11,176	$	32,847	$	27,837
Interest expense - net	(1,079)		(1,296)		(4,031)		(4,813)

Other income (expense) - net	421		(157)		823		320


Unallocated corporate expenses and other unallocated charges	(3,722)		(3,297)		(10,947)		(12,089)
Income before income taxes	$	3,115	$	6,426	$	18,692	$	11,255

The following table illustrates assets of the Company by segment:


	September 30, 2019		December 31, 2018
Rail Products and Services	$	181,694	$	175,704
Construction Products	99,997		97,133
Tubular and Energy Services	86,531		90,402
Unallocated corporate assets	28,065		20,010
Total	$	396,287	$	383,249