Business Segments

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Business Segments

NOTE 23 – BUSINESS SEGMENTS:

The Corporation organizes its business into two operating segments – FCEP and ALP.

The FCEP segment produces forged hardened steel rolls, cast rolls and forged engineered products (“FEP”). Forged hardened steel rolls are used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals. Cast rolls, which are produced in a variety of iron and steel qualities, are used mainly in hot strip mills, medium/heavy section mills, roughing mills, and plate mills. FEP principally are sold to customers in the steel distribution market, oil and gas industry and the aluminum and plastic extrusion industries. The segment has operations in the United States, England, Sweden, and Slovenia and equity interests in three joint venture companies in China. Collectively, the segment primarily competes with European, Asian, and North American and South American companies in both domestic and foreign markets and distributes a significant portion of its products through sales offices located throughout the world.

The ALP segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid. Aerofin produces custom-engineered finned tube heat exchange coils and related heat transfer products for a variety of industries including original equipment manufacturers and commercial, nuclear power generation and industrial manufacturing. Buffalo Air Handling produces large custom-designed air handling systems for institutional (e.g., hospital, university), pharmaceutical and general industrial building markets. Buffalo Pumps manufactures centrifugal pumps for the fossil-fueled power generation, marine defense and industrial refrigeration industries. The segment has operations in Virginia and New York with headquarters in Carnegie, Pennsylvania. The segment utilizes an independent group of sales offices located throughout the United States and Canada.

Net sales by product line for the years ended December 31, 2024 and 2023 are outlined below.

	Net Sales by Product Line
	2024		2023
Forged and Cast Engineered Products:
Forged and cast mill rolls	$	273,036	$	285,577
Forged engineered products		13,529		18,184
Total		286,565		303,761
Air and Liquid Processing:
Air handling systems		46,439		38,526
Centrifugal pumps		40,064		34,795
Heat exchange coils		45,237		45,258
Total		131,740		118,579
Consolidated total	$	418,305	$	422,340

The accounting policies for each segment are the same as those described in Note 1, Summary of Significant Accounting Policies. The Chief Executive Officer is the Corporation’s chief operating decision maker (“CODM”).

The Corporation measures each segment’s profitability based on income (loss) from operations. Segment income (loss) from operations excludes interest expense, other income and expense items and Corporate costs. The CODM uses segment income (loss) from operations when assessing segment performance and when making decisions to allocate financial resources between segments, primarily through periodic budgeting and segment performance reviews. The CODM also uses forecasted income (loss) from operations for each segment to manage operations.

Summarized financial information concerning the Corporation’s reportable segments is shown in the following tables.

	For the Year Ended December 31, 2024								For the Year Ended December 31, 2023
	FCEP		ALP			Total			FCEP			ALP			Total
Net Sales(1)	$	286,565	$	131,740		$	418,305		$	303,761		$	118,579		$	422,340
Less:(2)
Cost of products sold (excluding depreciation and amortization)		232,400		104,409						254,225			93,556
Selling and administrative		26,047		14,648						25,237			12,582
Depreciation and amortization		17,602		1,009						16,840			829
(Credit) charge for asbestos litigation (3)		—		(4,184	)					—			40,696
Loss (gain) on disposal of assets		22		—						(121	)		—
Segment income (loss) from operations	$	10,494	$	15,858			26,352		$	7,580		$	(29,084	)		(21,504	)
Reconciliation to income (loss) before income taxes
Other income, net (4)							4,497									4,644
Interest expense							(11,620	)								(9,347	)
Unallocated corporate costs (5)							(14,183	)								(13,070	)
Income (loss) before income taxes						$	5,046								$	(39,277	)

(1)For the FCEP segment, one customer accounted for 11% of its net sales in both 2024 and 2023.

(2)The significant expense categories and amounts align with the segment-level information regularly provided to the CODM.

(3)For 2024, the credit for asbestos litigation represents primarily a decrease in the estimated settlement costs of pending and future asbestos claims, net of additional insurance recoveries, and a benefit from the reduction in the estimated defense-to-indemnity cost ratio from 60% to 55%. For 2023, the charge for asbestos litigation represents primarily an increase in the estimated settlement costs of pending and future asbestos claims, net of additional insurance recoveries, and a benefit from the reduction in the estimated defense-to-indemnity cost ratio from 65% to 60%.

(4)Other income, net includes investment-related income, net pension and other postretirement income, losses on foreign exchange transactions, unrealized gains on Rabbi trust investments, and other items not included in the definition of segment income (loss) from operations.

(5)Unallocated corporate costs represent the operating expenses of the corporate office.

	Capital Expenditures				Depreciation and Amortization Expense				Identifiable Assets(1)
	2024		2023		2024		2023		2024		2023
Forged and Cast Engineered Products	$	7,166	$	17,055	$	17,602	$	16,840	$	289,129	$	308,966
Air and Liquid Processing		5,028		3,393		1,009		829		230,171		247,733
Corporate		—		—		—		5		11,596		8,955
Consolidated total	$	12,194	$	20,448	$	18,611	$	17,674	$	530,896	$	565,654

	Long-lived Assets(3)				Net Sales by Geographic Area (2)				Income (Loss) Before Income Taxes
Geographic Areas:	2024		2023		2024		2023		2024		2023
United States (4)	$	235,785	$	264,120	$	259,289	$	243,243	$	3,424	$	(44,114	)
Foreign		55,473		61,721		159,016		179,097		1,622		4,837
Consolidated total	$	291,258	$	325,841	$	418,305	$	422,340	$	5,046	$	(39,277	)

(1)Identifiable assets for the FCEP segment include investments in joint ventures of $2,175 at December 31, 2024 and 2023. Identifiable assets for the ALP segment include asbestos-related insurance receivables of $139,295 and $160,245 at December 31, 2024 and 2023, respectively. Identifiable assets for Corporate represent primarily cash and cash equivalents and other items not allocated to reportable segments.

(2)Net sales are attributed to the geographic areas based on the location of the customer. Sales to individual foreign countries were less than 10% of consolidated net sales for each of the years. The majority of foreign sales are attributable to the FCEP segment.

(3)Long-lived assets exclude deferred income tax assets. Long-lived assets in the U.S. include noncurrent asbestos-related insurance receivables of $124,295 and $145,245 at December 31, 2024 and 2023, respectively. Foreign long-lived assets primarily represent assets of the foreign operations.

(4)Income (loss) before income taxes for the U.S. includes Corporate costs. In 2024, income before income taxes for the U.S. includes a credit of $4,184, representing primarily a decrease in the estimated settlement costs of pending and future asbestos claims, net of additional insurance recoveries, and a benefit from the reduction in the estimated defense-to-indemnity cost ratio from 60% to 55%. In 2023, loss before income taxes for the U.S. includes a net charge of $40,696 representing primarily an increase in the estimated settlement costs of pending and future asbestos claims, net of additional insurance recoveries, and a benefit from the reduction in the estimated defense-to-indemnity cost ratio from 65% to 60%.