Note 4 - Business Segment and Geographic Information

12 Months Ended

Sep. 30, 2011

Segment Reporting Disclosure [Text Block]

4.   BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

The Company’s strategic business units are based on product lines which are comprised of three reportable segments: carbon fibers, technical fibers and corporate/other products. The carbon fibers segment manufactures commercial carbon fibers used as reinforcement material in composites. The technical fibers segment manufactures oxidized acrylic fibers and specialty carbon fibers used to manufacture aircraft brake pads and for heat/fire barrier applications. These two segments also facilitate development of product and process applications to increase the demand for carbon fibers and technical fibers. The carbon fibers and technical fibers segments’ production facilities are located geographically in the United States, Hungary and Mexico. The remaining business represented in the corporate/other products segment relates to water treatment and electrical services provided by the Hungarian operations and costs associated with the corporate headquarters.

Management evaluates the performance of its segments on the basis of operating income (loss) contribution. The following tables present financial information on the Company’s segments as of and for the fiscal years ended September 30, 2011, 2010 and 2009 (amounts in thousands):

	Fiscal year ended September 30, 2011
	Carbon Fibers		Technical  Fibers		Corporate/  Other			Total
Net sales	$	118,986	$	30,483	$	2,217		$	151,686
Cost of sales		106,832		25,500		1,653			133,985
Gross profit		12,154		4,983		564			17,701
Operating income (loss)		2,918		3,673		(11,320	)		(4,729	)
Depreciation		15,658		1,414		723			17,795
Capital expenditures		6,574		779		824			8,177
	Fiscal year ended September 30, 2010
	Carbon Fibers		Technical  Fibers		Corporate/ Other			Total
Net sales	$	103,390	$	23,301	$	1,773		$	128,464
Cost of sales		94,895		19,061		1,216			115,172
Gross profit		8,495		4,240		557			13,292
Operating income (loss)		312		3,403		(14,279	)		(10,564	)
Depreciation		13,762		1,567		1,132			16,461
Capital expenditures		3,175		627		608			4,410
	Fiscal year ended September 30, 2009
	Carbon Fibers		Technical  Fibers		Corporate/ Other			Total
Net sales	$	115,348	$	20,996	$	2,412		$	138,756
Cost of sales		88,678		17,359		2,059			108,096
Gross profit		26,670		3,637		353			30,660
Operating income (loss)		14,186		2,307		(13,098	)		3,395
Depreciation		13,490		1,667		1,194			16,351
Capital expenditures		14,983		642		581			16,206
	Total Assets
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
September 30. 2011	$	272,397	$	28,789	$	21,110		$	322,296
September 30. 2010	$	263,600	$	22,655	$	35,885		$	322,140

Sales, long-lived assets, and net assets by geographic area, consist of the following as of and for each of the three fiscal years in the period ended September 30, 2011, 2010 and 2009 (amounts in thousands):

	2011						2010						2009
	Net Sales(a)		Net Long Lived  Assets(b)		Net Assets		Net Sales(a)		Net Long Lived  Assets(b)		Net Assets		Net Sales(a)		Net Long Lived  Assets(b)		Net Assets
United States	$	66,342	$	41,403	$	74,232	$	43,762	$	41,536	$	79,892	$	34,036	$	44,539	$	247,569
Denmark		*		-		-		*		-		-		35,351		-		-
Hungary		*		98,326		126,589		*		112,034		132,827		*		132,880		53,668
Germany		26,250		-		-		21,336		-		-		19,809		-		-
Spain		*		-		-		*		-		-		15,178		-		-
Other Europe		45,761		-		-		52,441		-		-		31,999		-		-
Asia		11,266		-		-		9,989		-		-		2,205		-		-
Mexico		*		75,354		80,726		*		78,091		79,979		*		79,491		14,228
Other areas		2,067		-		-		936		-		-		178		-		-
Total	$	151,686	$	215,083	$	281,547	$	128,464	$	231,661	$	292,698	$	138,756	$	256,910	$	315,465

(a)	Revenues are attributed to countries based on the delivery location of the customer.
(b)	Property and equipment net of accumulated depreciation based on country location of assets.
*	Net sales for this country were less than 10% of total sales. Such sales were aggregated into “Other Europe,” “Asia” or “Other areas.”