L.B. Foster realigns business structure for future growth strategies
L.B. Foster Company has announced several changes to its global business segment reporting structure., designed to consolidate and better align the organization with future growth strategies.
L.B. Foster’s business portfolio and external business segment reporting structure will be consolidated into two primary segments: Rail Technologies & Services and Infrastructure Solutions. The Rail Technologies & Services segment will consist of businesses previously positioned within the Rail Products & Services segment. The Infrastructure Solutions segment will combine all businesses previously within the legacy Construction Products and Tubular and Energy Services segments. Each segment will report to a business line executive that will have responsibility for the segment’s performance.
In the Rail Technologies & Services segment, the company says it has increased its emphasis in developing technology to support new products and services and deliver real benefits to customers with improved efficiency, reduced disruptions, improved passenger comfort and information and enhanced safety. Core track products are being re-imagined, redesigned and improved with respect to resiliency and concerns around noise, vibration and exposure to tough environmental conditions. Leveraging these technologies across new and existing products and geographic markets is a cornerstone of this segment’s growth strategy.
Infrastructure Solutions is positioned to benefit from anticipated investment in a wide range of infrastructure needs including solutions that support transportation, energy and general infrastructure projects. Growth opportunities exist in several areas across this segment as customers seek partners with unique capabilities to solve problems with a cost effective, innovative approach. This segment provides custom engineered solutions tailored to customer specifications often supporting highly complex projects. Engineering and construction firms and general contractors look to L.B. Foster Infrastructure Solutions for design and application engineering help when addressing needs across highway, bridge, ports, railways, heavy civil, marine, water and storm water, agricultural, commercial and residential projects.
Commenting on the changes, L.B. Foster President and CEO Robert Bauer said, “The alignment we’re creating within these two segments, that will report to two senior business leaders, is designed to provide clear line of sight around the opportunities for growth and asset leverage. During the past year we have focused on ways to reduce cost and streamline operations as we were faced with challenging business conditions. Our goal was to emerge stronger, leaner, and focused on the actions intended to create value for our shareholders. We took steps in 2020 to restructure certain businesses and exit others that were unattractive and didn’t have a sustainable path to acceptable returns on capital. Among our diverse businesses in the Infrastructure Solutions segment, we will challenge the team to create scale around the most attractive markets and products. We plan to share more tools and assets and expose untapped leverage opportunities with customers and back office support that should result in lower costs and improved return on capital.”
Beginning with the 2020 Annual Report filed on Form 10-K, financial results for the company will reflect the realigned segment structure. Included in this release are restated results for 2018, 2019 and the first three quarters of 2020.
These organizational changes will not have an impact on the company’s portfolio of products, services and solutions.
