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Business Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segments

Note 19 – Business Segments

The FCEP segment produces forged hardened steel rolls, cast rolls and forged engineered products (“FEP”). Forged hardened steel rolls are used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals. Cast rolls, which are produced in a variety of iron and steel qualities, are used mainly in hot strip mills, medium/heavy section mills, roughing mills, and plate mills. FEP principally are sold to customers in the steel distribution market, oil and gas industry and the aluminum and plastic extrusion industries. The segment has operations in the United States, England, Sweden, and Slovenia and equity interests in three joint venture

companies in China. Collectively, the segment primarily competes with European, Asian and North American and South American companies in both domestic and foreign markets and distributes a significant portion of its products through sales offices located throughout the world.

The ALP segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid. Aerofin produces custom-engineered finned tube heat exchange coils and related heat transfer products for a variety of industries including original equipment manufacturers and commercial, nuclear power generation and industrial manufacturing. Buffalo Air Handling produces large custom-designed air handling systems for institutional (e.g., hospital, university), pharmaceutical and general industrial building markets. Buffalo Pumps manufactures centrifugal pumps for the fossil-fueled power generation, marine defense and industrial refrigeration industries. The segment has operations in Virginia and New York with headquarters in Carnegie, Pennsylvania. The segment utilizes an independent group of sales offices located throughout the United States and Canada.

Net sales by product line for the three and six months ended June 30, 2025 and 2024 are outlined below.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

Forged and Cast Engineered Products

 

 

 

 

 

 

 

 

 

 

 

Forged and cast mill rolls

$

72,227

 

 

$

72,647

 

 

$

140,849

 

 

$

146,043

 

FEP

 

5,682

 

 

 

3,066

 

 

 

9,347

 

 

 

6,859

 

Forged and Cast Engineered Products

 

77,909

 

 

 

75,713

 

 

 

150,196

 

 

 

152,902

 

 

 

 

 

 

 

 

 

 

 

 

 

Air and Liquid Processing

 

 

 

 

 

 

 

 

 

 

 

Air handling systems

 

13,882

 

 

 

14,043

 

 

 

24,510

 

 

 

26,553

 

Heat exchange coils

 

11,299

 

 

 

11,979

 

 

 

22,824

 

 

 

22,802

 

Centrifugal pumps

 

10,014

 

 

 

9,253

 

 

 

19,839

 

 

 

18,946

 

Air and Liquid Processing

 

35,195

 

 

 

35,275

 

 

 

67,173

 

 

 

68,301

 

Total Reportable Segments

$

113,104

 

 

$

110,988

 

 

$

217,369

 

 

$

221,203

 

The accounting policies for each segment are the same as those described in Item 8, Financial Statements and Supplementary Data, in Part II of our Annual Report on Form 10-K for the year ended December 31, 2024. The Corporation's Chief Executive Officer is the Corporation’s CODM.

The Corporation measures each segment’s profitability based on (loss) income from operations. Segment (loss) income from operations excludes interest expense, other income and expense items and Corporate costs. Along with other measures, including non-GAAP measures, the CODM uses segment (loss) income from operations when assessing segment performance and when making decisions to allocate financial resources between segments, primarily through periodic budgeting and segment performance reviews.

Summarized financial information concerning the Corporation’s reportable segments is shown in the following tables.

 

Three Months Ended June 30,

 

 

2025

 

 

2024

 

 

FCEP (5)

 

ALP

 

 

Total

 

 

FCEP

 

ALP

 

 

Total

 

Net sales

$

77,909

 

$

35,195

 

 

$

113,104

 

 

$

75,713

 

$

35,275

 

 

$

110,988

 

Less:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold (excluding depreciation and amortization)(2)

 

64,437

 

 

27,544

 

 

 

 

 

 

59,531

 

 

28,153

 

 

 

 

Selling and administrative

 

6,486

 

 

3,445

 

 

 

 

 

 

6,354

 

 

3,704

 

 

 

 

Depreciation and amortization

 

5,084

 

 

284

 

 

 

 

 

 

4,454

 

 

244

 

 

 

 

Severance charge

 

5,854

 

 

—

 

 

 

 

 

 

—

 

 

—

 

 

 

 

Loss on disposal of assets

 

11

 

 

—

 

 

 

 

 

 

13

 

 

—

 

 

 

 

Segment (loss) income from operations

$

(3,963

)

$

3,922

 

 

 

(41

)

 

$

5,361

 

$

3,174

 

 

 

8,535

 

Reconciliation to (loss) income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate costs (3)

 

 

 

 

 

 

(3,037

)

 

 

 

 

 

 

 

(3,492

)

Interest expense

 

 

 

 

 

 

(2,825

)

 

 

 

 

 

 

 

(3,017

)

Other (expense) income - net (4)

 

 

 

 

 

 

(225

)

 

 

 

 

 

 

 

1,389

 

(Loss) income before income taxes

 

 

 

 

 

$

(6,128

)

 

 

 

 

 

 

$

3,415

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

FCEP (5)

 

ALP

 

 

Total

 

 

FCEP

 

ALP

 

 

Total

 

Net sales

$

150,196

 

$

67,173

 

 

$

217,369

 

 

$

152,902

 

$

68,301

 

 

$

221,203

 

Less:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold (excluding depreciation and amortization)(2)

 

122,050

 

 

52,035

 

 

 

 

 

 

124,982

 

 

55,192

 

 

 

 

Selling and administrative

 

12,871

 

 

7,170

 

 

 

 

 

 

12,086

 

 

7,469

 

 

 

 

Depreciation and amortization

 

9,452

 

 

552

 

 

 

 

 

 

8,884

 

 

484

 

 

 

 

Severance charge

 

5,854

 

 

—

 

 

 

 

 

 

—

 

 

—

 

 

 

 

Loss on disposal of assets

 

27

 

 

—

 

 

 

 

 

 

13

 

 

—

 

 

 

 

Segment (loss) income from operations

$

(58

)

$

7,416

 

 

 

7,358

 

 

$

6,937

 

$

5,156

 

 

 

12,093

 

Reconciliation to (loss) income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate costs (3)

 

 

 

 

 

 

(6,586

)

 

 

 

 

 

 

 

(6,968

)

Interest expense

 

 

 

 

 

 

(5,551

)

 

 

 

 

 

 

 

(5,774

)

Other income - net (4)

 

 

 

 

 

 

601

 

 

 

 

 

 

 

 

2,312

 

(Loss) income before income taxes

 

 

 

 

 

$

(4,178

)

 

 

 

 

 

 

$

1,663

 

 

(1)
The significant expense categories and amounts align with the segment-level information regularly provided to the CODM.
(2)
Cost of products sold (excluding depreciation and amortization) for the three and six months ended June 30, 2025 includes employee-retention credits, which are refundable employer payroll taxes for certain eligible businesses affected by the COVID-19 pandemic received from the Internal Revenue Service (the “Employee-Retention Credits”) of $735 for the FCEP ($456) and ALP ($279) segments.
(3)
Corporate costs represent the operating expenses of the corporate office and other costs not allocated to the segments.
(4)
Other income - net includes net pension and other postretirement income, gains and losses on foreign exchange transactions, unrealized gains and losses on Rabbi trust investments, and investment income.
(5)
FCEP segment loss from operations for the three and six months ended June 30, 2025 includes charges for severance, accelerated depreciation and other exit costs of $6,750 associated with exiting the U.K. operations.

 

 

 

 

Capital Expenditures

 

 

Depreciation and
Amortization Expense

 

 

Identifiable Assets(2)

 

 

 

Six Months Ended June 30,

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

June 30,
2025

 

December 31,
2024

 

 

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

 

 

 

 

 

FCEP (1)

 

$

2,646

 

$

4,134

 

 

$

5,084

 

$

4,454

 

 

$

9,452

 

$

8,884

 

 

$

310,308

 

$

289,129

 

ALP

 

 

1,015

 

 

1,376

 

 

 

284

 

 

244

 

 

 

552

 

 

484

 

 

 

220,999

 

 

230,171

 

Corporate

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

5,846

 

 

11,596

 

Consolidated total

 

$

3,661

 

$

5,510

 

 

$

5,368

 

$

4,698

 

 

$

10,004

 

$

9,368

 

 

$

537,153

 

$

530,896

 

 

 

 

 

Long-lived Assets(3)

 

 

Net Sales by
Geographic Area(4)

 

 

(Loss) Income
Before Income Taxes

 

 

 

 

June 30,
2025

 

December 31,
2024

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

Geographic Areas:

 

 

 

 

 

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

 

2025

 

2024

 

United States (5)

 

$

221,711

 

$

235,785

 

 

$

61,727

 

$

72,916

 

 

$

121,623

 

$

142,680

 

 

$

(48

)

$

1,205

 

 

$

349

 

$

(1,018

)

 

Foreign (6)

 

 

61,369

 

 

55,473

 

 

 

51,377

 

 

38,072

 

 

 

95,746

 

 

78,523

 

 

 

(6,080

)

 

2,210

 

 

 

(4,527

)

 

2,681

 

 

Consolidated total

 

$

283,080

 

$

291,258

 

 

$

113,104

 

$

110,988

 

 

$

217,369

 

$

221,203

 

 

$

(6,128

)

$

3,415

 

 

$

(4,178

)

$

1,663

 

 
(1)
Depreciation and amortization expense for the three and six months ended June 30, 2025 includes accelerated depreciation of $654 associated with exiting the U.K. operations.
(2)
Identifiable assets for the FCEP segment include investments in joint ventures of $2,175 at June 30, 2025 and December 31, 2024. Identifiable assets for the ALP segment include asbestos-related insurance receivables of $130,143 and $139,295 at June 30, 2025 and December 31, 2024, respectively. Identifiable assets for Corporate represent cash and cash equivalents and other items not allocated to reportable segments.
(3)
Long-lived assets exclude deferred income tax assets. Long-lived assets in the U.S. include noncurrent asbestos-related insurance receivables of $115,143 and $124,295 at June 30, 2025 and December 31, 2024, respectively. Foreign long-lived assets primarily represent assets of the foreign operations.
(4)
Net sales are attributed to the geographic areas based on the location of the customer. Sales to individual foreign countries were less than 10% of consolidated net sales for each of the periods. The majority of foreign net sales for each of the periods is attributable to the FCEP segment.
(5)
Loss before income taxes for the U.S. for the three and six months ended June 30, 2025 include Employee-Retention Credits of $735.
(6)
Loss before income taxes for foreign for the three and six months ended June 30, 2025 includes charges for severance, accelerated depreciation and other exit costs of $6,750 associated with exiting the U.K. operations.