Note 3 - Segment Information

3 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

3.             SEGMENT 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 and related products, including prepregs. 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 three months then ended December 31, 2012 and 2011 (in thousands):

	Three months ended December 31, 2012
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	28,715	$	6,590	$	572		$	35,877
Cost of sales		22,178		4,139		483			26,800
Gross profit		6,537		2,451		89			9,077
Operating income (loss)		4,571		2,346		(3,268	)		3,649
Depreciation		4,167		370		121			4,658
Capital expenditures		851		1,769		287			2,907

	Three months ended December 31, 2011
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	37,679	$	8,834	$	533		$	47,046
Cost of sales		27,661		5,729		478			33,868
Gross profit		10,018		3,105		55			13,178
Operating income (loss)		8,318		2,749		(2,861	)		8,206
Depreciation		3,986		322		117			4,425
Capital expenditures		6,610		207		212			7,029

	Total Assets
	Carbon Fibers		Technical Fibers		Corporate/ Other		Total
December 31, 2012	$	310,443	$	33,173	$	14,833	$	358,449
September 30, 2012	$	301,440	$	31,597	$	25,651	$	358,688