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Dresser-Rand shares rise after strong 3Q profit

November 3, 2011

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HOUSTON—Shares of Dresser-Rand Group Inc. rose Thursday after the oil-services company said its third-quarter profit rose as the company benefited from high oil prices and an acquisition.

Its shares rose $2.45, or 5 percent, to $51.06.

The company said late Wednesday that its net income rose 6.4 percent to $39.9 million, or 51 cents per share, for the quarter that ended Sept. 30, up from $37.5 million, or 46 cents per share, a year earlier.

Revenue rose 30.5 percent to $630.5 million, from $483.1 million a year ago, including $100 million from its purchase of Grupo Guascor SL, a Spanish engine supplier.

Analysts surveyed by FactSet had expected a profit of 44 cents per share on revenue of $667.1 million.

The company also raised its estimate for full-year aftermarket bookings by $100 million, to a range of $1.2 billion to $1.4 billion.

Dresser-Rand said it expects operating income of $275 million to $315 million for the year, with a bias toward the low side of that range because of the instability in Libya.