Dresser-Rand Income Down

Dresser-Rand Group, a global supplier of rotating equipment and aftermarket parts and services, reported net income of $16.6 million, or $0.22 per diluted share, for the first quarter 2014 compared to net income of $0.43 per diluted share for the first quarter 2013.

Vincent R. Volpe Jr., President and Chief Executive Officer of Dresser-Rand, said, “In the first quarter 2014, we generated operating income of $40.2 million, which was slightly above the top end of our guidance range. Net working capital improved by approximately $33 million and we generated cash from operating activities of approximately $59 million, which represents an improvement of more than $100 million over the corresponding period last year.

“As anticipated, New Units bookings for the first quarter were light, but should improve over the course of the year as major project awards are expected starting over the next few months. Aftermarket bookings were lower than last year’s level as a result of the impact of the draft Spanish regulation of approximately $26 million, the adverse translational effect of the stronger U.S. dollar of approximately $7 million, and reduced bookings for one Latin American National Oil Company (NOC) client.”

“While the shortfall with this NOC was considerable in the first quarter at approximately $28 million, we are working collaboratively with this client and believe that, over time, we will be able to resume normal business activity. We continue to expect full year bookings in both segments to increase from 2013 levels.”

“With first quarter results generally in line with our expectations, we remain confident about the opportunities available for Dresser-Rand and our continued progress on operational excellence initiatives. We also expect to see improved operating margins as volumes increase over the balance of the year. As a result, we are reiterating our full year operating income guidance of $377 million to $396 million.”