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Business Segment Information
 6 Months Ended
Jun. 30, 2011
Business Segment Information  
Business Segment Information

6. Business Segment Information

CECO's operations are organized and reviewed by management along its product lines and presented in three reportable segments. The results of the segments are reviewed through to the "Income from operations" line on the Statements of Operations.

Engineered Equipment and Parts Group

Our Engineered Equipment and Parts Group, located in the United States as well as Canada, Brazil, China, and India, is comprised of CECO Filters, Busch International, CECO Abatement, Effox, FKI, Flextor and A.V.C. We enable our customers to meet BACT requirements and compliance targets for fumes, volatile organic compounds, process, and industrial odors. Our services eliminate toxic emission fumes and volatile organic compounds from large-scale industrial processes. We have a presence in the chemical processing, ethanol, paint booth emissions, wastewater treatment, and wood products industries.

Contracting/Services Group

Our Contracting/Services Group is comprised of the contracting/services operations of our Kirk & Blum divisions. We provide custom metal fabrication services at our Kirk & Blum Columbia Tennessee and Louisville Kentucky locations. These facilities are used to fabricate parts, subassemblies, and customized products for air pollution and non-air pollution applications from sheet, plate, and structurals.

Component Parts Group

We market component parts for industrial air systems to contractors, distributors and dealers throughout the United States.

The accounting policies of the segments are the same as those in the consolidated financial statements.

Summary of Business by Segment

     Three Months Ended June 30,     Six Months Ended June 30,  
$ in thousands    2011     2010     2011     2010  

Net Sales

         

Engineered equipment and parts

         

United States

    $ 19,862      $ 18,150      $ 42,106      $ 38,956   

Canada

      1,588        3,356        4,362        6,117   

Brazil

      867        79        987        220   

China

      2,002        1,047        3,669        1,182   

India

      34        488        125        618   
  

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

      24,353        23,120        51,249        47,093   

Contracting / Services

      6,863        9,427        15,270        18,601   

Component Parts

      4,554        4,728        9,303        8,795   

Corporate and other (a)

      298        463        627        768   

Eliminations

      (3,531 )      (2,962 )      (7,956 )      (5,460 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 32,537      $ 34,776      $ 68,493      $ 69,797   
  

 

 

    

 

 

    

 

 

    

 

 

  

(a)     Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company.

 

Net Operating Income (Loss)

         

Engineered equipment and parts

    $ 2,898      $ 2,042      $ 5,009      $ 4,845   

Contracting / Services

      547        379        1,378        (391 ) 

Component Parts

      947        706        1,854        1,046   

Corporate and other (b)

      (1,435 )      (1,728 )      (2,942 )      (3,330 ) 

Eliminations

      (112 )      (29 )      (39 )      (152 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net operating income (loss)

    $ 2,845      $ 1,370      $ 5,260      $ 2,018   
  

 

 

    

 

 

    

 

 

    

 

 

  

(b)     Includes Corporate compensation, professional services, information technology, and other general and administrative Corporate expenses. Also included are the operations of our Engineering Group, which is not significant to the overall operations of the Company.

 

Property and Equipment Additions

            

Engineered equipment and parts

    $ 12       $ 101       $ 66       $ 192   

Contracting / Services

      —           6         9         24   

Component Parts

      32         16         32         37   

Corporate and other (c)

      52         2         149         60   
  

 

 

     

 

 

     

 

 

     

 

 

  

Property and equipment additions

    $ 96       $ 125       $ 256       $ 313   
  

 

 

     

 

 

     

 

 

     

 

 

  

(c)    Includes Corporate and Engineering Group property and equipment additions.

 

Depreciation and Amortization

            

Engineered equipment and parts

    $ 215       $ 270       $ 444       $ 493   

Contracting / Services

      57         115         114         230   

Component Parts

      42         45         83         91   

Corporate and other (d)

      55         36         105         71   
  

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and amortization

    $ 369       $ 466       $ 746       $ 885   
  

 

 

     

 

 

     

 

 

     

 

 

  

(d)    Includes Corporate and Engineering Group depreciation and amortization.

 

 

     June 30,     December 31,  
     2011     2010  

Identifiable Assets

     

Engineered equipment and parts

    $ 119,959      $ 107,649   

Contracting / Services

      47,216        46,251   

Component Parts

      5,075        4,616   

Corporate and other (e)

      (26,080 )      (20,161 ) 

Eliminations

      (73,111 )      (63,564 ) 
  

 

 

    

 

 

  

Identifiable assets

    $ 73,059      $ 74,791   
  

 

 

    

 

 

  

(e)     Includes Corporate and Engineering Group identifiable assets. Intercompany accounts receivable/payable for Corporate and the Engineering Group are included in these amounts.

 

Goodwill

     

Engineered equipment and parts

    $ 14,776      $ 14,713   

Contracting / Services

      —          —     

Component Parts

      —          —     
  

 

 

    

 

 

  

Goodwill

    $ 14,776      $ 14,713