Dresser-Rand Reports Strong Fourth Quarter , Year 2005 Results
Dresser-Rand Group reported net income of $32 million, or $0.38 per diluted share, for the fourth quarter 2005. This compares to net income of $10.4 million, or $0.15 per diluted share for the third quarter 2005.
"2005 was a year of significant accomplishments for Dresser-Rand," said Vincent R. Volpe, Jr., the rotating equipment supplier's president and CEO. "In addition to our strong operating results, we made significant progress during the year completing our initial public offering, acquiring certain assets of Tuthill Energy Systems (TES) and paying down debt."
Volpe added that Dresser-Rand entered 2006 with a "record" backlog and is well-positioned to benefit from the continued strength in the markets it serves.
The fourth quarter 2005 revenues of $362 million reflect a 17-percent jump from the third quarter. Total operating income increased from $35.8 million to $50.8 million during that same period. The company attributes the gain to improvements in operating productivity, volume leverage, and pricing.
Dresser-Rand reduced its fourth quarter 2005 net income by a $1.9 million inventory write-off at its Brazilian subsidiary. The change reduced earnings by approximately $0.02 per share. In addition, the company's fourth quarter 2005 provision for income taxes of $4.9 million was substantially lower than the U.S. Federal statutory rate of 35 percent. "This occurred principally because our income exclusion available for export sales from the U.S. was significantly larger than previously estimated," stated the company.
Revenues for the year 2005 of more than $1.2 billion compare to revenues for the
year 2004 of $915.4 million--an increase of approximately 32 percent. Operating
income for 2005 was $116.1 million. Bookings for the year were
approximately $1.45 billion and the backlog at the end of December 2005 was $884.7 million, 39 percent higher from the previous year.
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