Dresser-Rand -7.8% after warning on 2013 earnings

|About: Dresser-Rand Group Inc. (DRC)|By:, SA News Editor

Dresser-Rand (DRC -7.8%) shares stink today after the oilfield equipment maker warns its 2013 earnings will come in below expectations due to a restructured tariff regime in Spain that will cause it to suspend operations at six pig manure plants in the country.

The Spanish government published a draft bill which would reduce tariffs by 37% retroactive to July 2013; if the draft regulation is passed, DRC says it would be required to reduce 2013 operating income by ~$25M due to the retroactive tariff reductions and up to $50M due to asset impairments.

DRC says it also was hurt by a failure to sell three photovoltaic power plants and a stalled shipment of equipment for a pipeline project in Central Asia.