Note 4 - Business Segment and Geopgraphic Information

12 Months Ended

Sep. 30, 2012

Segment Reporting Disclosure [Text Block]

4.   BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

The Company’s strategic business units are based on product lines and 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 September 30, 2012 and 2011 and for the fiscal years ended September 30, 2012, 2011 and 2010 (amounts in thousands):

	Fiscal year ended September 30, 2012
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	151,494	$	32,425	$	2,418		$	186,337
Cost of sales		117,431		20,853		2,409			140,693
Gross profit		34,063		11,572		9			45,644
Operating income (loss)		27,818		10,328		(12,505	)		25,641
Depreciation		15,986		1,351		505			17,842
Capital expenditures		17,434		1,208		3,715			22,357

	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

	Total Assets
	Carbon Fibers		Technical Fibers		Corporate/ Other		Total
September 30. 2012	$	301,440	$	31,597	$	25,651	$	358,688
September 30. 2011	$	272,397	$	28,789	$	21,110	$	322,296

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, 2012, 2011 and 2010 (amounts in thousands):

	2012						2011						2010
	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	$	72,269	$	47,645	$	82,337	$	66,342	$	41,403	$	74,232	$	43,762	$	41,536	$	79,892
Hungary		*		96,394		135,521		*		98,326		126,589		*		112,034		132,827
Germany		34,600		-		-		26,250		-		-		21,336		-		-
Other Europe		56,030		-		-		45,761		-		-		52,441		-		-
Asia		21,374		-		-		11,266		-		-		9,989		-		-
Mexico		*		71,611		83,113		*		75,354		80,726		*		78,091		79,979
Other areas		2,064		-		-		2,067		-		-		936		-		-
Total	$	186,337	$	215,650	$	300,971	$	151,686	$	215,083	$	281,547	$	128,464	$	231,661	$	292,698

(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.”