2. INVENTORIES

The Company values inventory at the lower of cost or market. Raw steel is valued on the last-in, first-out ("LIFO") method. Other inventories are valued on the first-in, first-out ("FIFO") method. Inventories valued on the LIFO method would have been approximately $1.9 million higher at September 30, 2011 and June 30, 2011, if they had been valued on the FIFO method. At September 30, 2011 and June 30, 2011, the total value of LIFO inventory was $2.0 million and $1.5 million, respectively. A comparison of inventories is as follows (in thousands):

		September 30, 2011		June 30, 2011
Raw materials	$	8,342	$	9,235
Work in process and finished parts		4,186		3,951
Finished goods		65,849		60,494
Total	$	78,377	$	73,680