Dresser-Rand Falls on Guidance Cut
Shares of Dresser-Rand (NYSE: DRC) are seeing much pressure during Friday's trading session after the company cut fourth quarter guidance.
Dresser-Rand expects new unit revenues of approximately $350 million for the fourth quarter, which would be approximately $200 million lower than its earlier expectations.
The Company estimates that the operating income associated with this sales shortfall in the quarter to be approximately $30 million. The shipment shortfall was principally due to supply chain delays on major buyouts and client requests to defer deliveries to 2012. The issues with major buyouts were principally related to timely receipt of motors and other drivers.
The adverse impact of the strengthened U.S. dollar on Dresser-Rand's 2012 operating income outlook is estimated to be approximately $30 million. As a result, the Company is revising its 2012 operating income guidance from $390 - $450 million to $360 - $420 million.
Currently, shares of Dresser-Rand are trading about 7% lower at $48.90.
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