Note 3 - Segment Information

6 Months Ended

Mar. 31, 2013

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 and equipment used to manufacture composite products. 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 March 31, 2013 and September 30, 2012, and for the three and six months ended March 31, 2013 and 2012 (in thousands):

	Three months ended March 31, 2013
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	25,150	$	7,696	$	460		$	33,306
Cost of sales		21,298		4,532		444			26,274
Gross profit		3,852		3,164		16			7,032
Operating income (loss)		1,973		3,007		(3,279	)		1,701
Depreciation		4,016		338		156			4,510
Capital expenditures		1,438		1,308		778			3,524

	Three months ended March 31, 2012
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	37,944	$	8,480	$	590		$	47,014
Cost of sales		30,084		5,376		586			36,046
Gross profit		7,860		3,104		4			10,968
Operating income (loss)		6,145		2,777		(3,211	)		5,711
Depreciation		3,959		339		129			4,427
Capital expenditures		4,903		44		251			5,198

	Six months ended March 31, 2013
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	53,865	$	14,286	$	1,032		$	69,183
Cost of sales		43,476		8,671		927			53,074
Gross profit		10,389		5,615		105			16,109
Operating income (loss)		6,544		5,353		(6,547	)		5,350
Depreciation		8,183		708		277			9,168
Capital expenditures		2,289		3,077		1,065			6,431

	Six months ended March 31, 2012
	Carbon Fibers		Technical Fibers		Corporate/ Other			Total
Net sales	$	75,623	$	17,314	$	1,123		$	94,060
Cost of sales		57,745		11,105		1,064			69,914
Gross profit		17,878		6,209		59			24,146
Operating income (loss)		14,463		5,526		(6,069	)		13,920
Depreciation		7,945		661		245			8,851
Capital expenditures		11,513		251		463			12,227

	Total Assets
	Carbon Fibers		Technical Fibers		Corporate/ Other		Total
March 31, 2013	$	293,744	$	30,049	$	21,104	$	344,897
September 30, 2012	$	301,440	$	31,597	$	25,651	$	358,688