- Dresser-Rand (NYSE:DRC) -6% premarket after Q4 earnings plunged to $0.43/share from $1.05, which includes a $0.81 reduction caused by the impact of the previously disclosed draft Spanish regulation.
- Total revenue was a lower than expected $827M and below last year's $844M, primarily from the retroactive reduction of the tariffs in the draft Spanish regulation.
- Bookings for Q4 and the year were lower by $23.7M as a result of the draft Spanish regulation; backlog at the end of Dec. 2013 of $2.85B was 3.3% lower than the $2.94B at the end of 2012.
- DRC issued downside guidance for FY 2014, seeing EPS of $2.60-$2.80 vs. $3.11 analyst consensus estimate, and revenues of $2.9B-$3.1B vs. $3.1B consensus.
- DRC recently suspended operations at its pig manure treatment plants in Spain amid discussion over potential new regulation and tariffs; DRC says the plants could resume operating as the regulation hasn't yet been adopted.