Dresser--Rand Dresser 2Q09 Conference Call July 30, 2009 Copyright 2009
Solid 2Q09 Performance Net Income 60 million + 29% EPS 0.74 per share + 35% Sales 606 million + 12% Operating Income 96 million + 27% Strategic Alliance Agreement with Samsung Techwin Note: % change versus 2Q08 Copyright…
LTM Bookings by Segment ( in Millions) LTM bookings through 6/30/09: 2,700 2,204 1% higher than 6/30/08 2,124 2,189 832 985 1,068 4% higher than 6/30/07 1,800 By Market (as a % of total 1,292 bookings): 900 1,204 1,136 34%…
Aftermarket Bookings ( in Millions) 300 2Q09 bookings 13% lower 271 than 2Q08 30 236 3 Significant reduction in order 200 flow from one NOC Service and repair bookings 241 have remained steady 233 100 Stronger US Dollar (18)…
New Unit Bookings ( in Millions) 250 232 2Q09 bookings 27% lower than 2Q08 200 169 Al Jabail Refinery - 45 order booked in June 2009 150 Five reciprocating 100 compressors 50 Two steam turbine power generation packages 0 Stronger…
Backlog by Segment ( in Millions) 2,250 Backlog of 1.9 billion 6.5% lower than 2Q08 2,086 1,949 20.9% higher than 2Q07 1,500 1,708 1,612 1,535 New unit backlog down 1,335 10.1% vs. last year 750 Aftermarket backlog up 9.5% vs.…
Samsung Techwin Strategic Alliance Samsung Techwin, affiliate of Samsung Group in Korea, will cooperate in packaging and selling engineered centrifugal compressors and gas turbines Agreement calls for exclusive packaging of…
Second Quarter Results ( in Millions) 2Q09 2Q08 Change Sales 606.1 541.2 12.0% Operating Income 96.2 75.5 - Partial Settlement 0.0 1.8 Adjusted Operating Income 96.2 77.3 - Adjusted Margin % 15.9% 14.3% Interest Expense - net (8.4)…
Sales by Segment ( in Millions) 625 606 Total sales increased 12% 541 258 500 242 compared to 2Q08 375 New Unit sales 348 250 299 increased 16% 125 Aftermarket sales 0 increased 7% 2Q08 2Q09 New Units Aftermarket Copyright…
Operating Income ( in Millions) 2Q09 2Q08 GAAP Operating Income 96.2 75.5 Plan Settlement 0.0 1.8 Adjusted Operating Income 96.2 77.3 Adjusted OI Margin 15.9% 14.3% Copyright 2009 11
New Unit Operating Margins 15% 13.8% Margin improved due to: Better mix 10% Higher volume 8.6% Cost control Expect full year 2009 5% margins to be in low double digits 0% 2Q08 2Q09 Copyright 2009 12
Aftermarket Operating Margins 30% 29.3% Decreased 310 basis points 26.2% principally due to less favorable mix within the 20% segment Expect full year 2009 margin to be 26% to 28% 10% 0% 2Q08 2Q09 Copyright 2009 13
Operating Cash Flow ( in Millions) Six Months Ended June '09 June '08 Net Income 94.8 73.9 D&A 25.6 24.9 Plan Settlement / Curtailment Amend. (0.2) (11.8) Equity Loss on Investments 0.3 0.0 Working Capital (14.4) 40.1 Pension…
Cash Flow ( in Millions) Six Months Ended June '09 June '08 Net Cash Provided by Operating Activities 68.4 104.2 Investing Activities (17.9) (14.6) Financing Activities 0.0 (26.5) Effect of Exchange Rate 3.6 3.8 Net Change in…
2009 Operating Income Guidance ( in Millions) 2008 2009 Guidance Range Actual 400 360 338 320 300 200 100 0 Copyright 2009 17
Current Market Conditions Market for new units remains sluggish Believe client delays in placing orders are temporary Steady flow of inquiries Continue to expect new unit bookings for the full year to be in the range of 700 million…
Aftermarket Bookings 1st Six Months ( in Millions) 508 525 482 43 Significant reduction in order 14 flow from one NOC 350 Adjusting for NOC shortfall, 1H 09 bookings slightly 465 468 higher than 1H 08 175 Stronger U.S. dollar…
Contingency Plans Already In Place Flex manufacturing structure as necessary Specific action plans developed for every part of the business to: Reduce cost Minimize disruptions No Need for Major Restructuring Copyright…
Wellsville Labor Update Current agreement expires August 15 Successfully negotiated contemporary agreement in 2006 Negotiations underway Contingency plan in-place Satisfactory agreement expected before the current agreement…
Appendix Copyright 2009
EPS 2Q09 2Q08 GAAP EPS 0.74 0.55 Adjustments to (from) Net Income - Plan Settlement 0.00 0.01 Adjusted Non-GAAP EPS 0.74 0.56 Copyright 2009 23
Net Income Excluding Unusual Items ( in Millions) 2Q09 2Q08 Net Income 60.3 46.7 Plan Settlement 0.0 1.2 Net Income Excluding Unusual Items 60.3 47.9 Copyright 2009 24
Net Debt Reconciliation to GAAP ( in Millions) At 6/30 2009 2008 Total Debt 370.2 370.4 Less Cash (201.2) (273.1) Net Debt 169.0 97.3 Copyright 2009 25
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