Business Segments

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Business Segments

Note 18 – Business Segments

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 three months ended March 31, 2025 and 2024 are outlined below.

	Three Months Ended March 31,
	2025		2024
Net sales:
Forged and Cast Engineered Products
Forged and cast mill rolls	$	68,622	$	73,396
FEP		3,665		3,793
Forged and Cast Engineered Products		72,287		77,189
Air and Liquid Processing
Air handling systems		10,628		12,510
Heat exchange coils		11,525		10,823
Centrifugal pumps		9,825		9,693
Air and Liquid Processing		31,978		33,026
Total Reportable Segments	$	104,265	$	110,215

The accounting policies for each segment are the same as those described in Item 8, Financial Statements and Supplementary Data, in Part II of our Annual Report on Form 10-K for the year ended December 31, 2024. The Corporation's Chief Executive Officer is the Corporation’s CODM.

The Corporation measures each segment’s profitability based on income from operations. Segment income from operations excludes interest expense, other income and expense items and Corporate costs. Along with other measures, including non-GAAP measures, the CODM uses segment income from operations when assessing segment performance and when making decisions to allocate financial resources between segments, primarily through periodic budgeting and segment performance reviews.

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

	Three Months Ended March 31,
	2025							2024
	FCEP		ALP		Total			FCEP		ALP		Total
Net sales	$	72,287	$	31,978	$	104,265		$	77,189	$	33,026	$	110,215
Less:(1)
Cost of products sold (excluding depreciation and amortization)		57,613		24,491					65,451		27,039
Selling and administrative		6,385		3,725					5,732		3,765
Depreciation and amortization		4,368		268					4,430		240
Loss on disposal of assets		16		—					—		—
Segment income from operations	$	3,905	$	3,494		7,399		$	1,576	$	1,982		3,558
Reconciliation to income (loss) before income taxes
Corporate costs (2)						(3,549	)						(3,476	)
Interest expense						(2,726	)						(2,757	)
Other income - net (3)						826							923
Income (loss) before income taxes					$	1,950						$	(1,752	)

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

(2)Corporate costs represent the operating expenses of the corporate office and other costs not allocated to the segments.

(3)Other income - net includes net pension and other postretirement income, gains and losses on foreign exchange transactions, unrealized gains and losses on Rabbi trust investments, and investment income.

	Capital Expenditures				Depreciation and Amortization Expense				Identifiable Assets(1)
	March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024		March 31, 2025		December 31, 2024
Forged and Cast Engineered Products	$	1,399	$	2,548	$	4,368	$	4,430	$	303,618	$	289,129
Air and Liquid Processing		801		289		268		240		225,960		230,171
Corporate		—		—		—		—		6,615		11,596
Consolidated total	$	2,200	$	2,837	$	4,636	$	4,670	$	536,193	$	530,896

	Long-lived Assets(2)				Net Sales by Geographic Area(3)				Income (Loss) Before Income Taxes
Geographic Areas:	March 31, 2025		December 31, 2024		March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024
United States	$	229,733	$	235,785	$	59,896	$	69,764	$	397	$	(2,223	)
Foreign		57,116		55,473		44,369		40,451		1,553		471
Consolidated total	$	286,849	$	291,258	$	104,265	$	110,215	$	1,950	$	(1,752	)

(1)Identifiable assets for the FCEP segment include investments in joint ventures of $2,175 at March 31, 2025 and December 31, 2024. Identifiable assets for the ALP segment include asbestos-related insurance receivables of $134,887 and $139,295 at March 31, 2025 and December 31, 2024, respectively. Identifiable assets for Corporate represent primarily cash and cash equivalents and other items not allocated to reportable segments.

(2)Long-lived assets exclude deferred income tax assets. Long-lived assets in the U.S. include noncurrent asbestos-related insurance receivables of $119,887 and $124,295 at March 31, 2025 and December 31, 2024, respectively. Foreign long-lived assets primarily represent assets of the foreign operations.

(3)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 periods. The majority of foreign net sales for each of the periods is attributable to the FCEP segment.