MIRA INFORM REPORT

 

 

Report Date :

28.08.2007

 

IDENTIFICATION DETAILS

 

Name :

DRESSER RAND COMPANY

 

 

Registered Office :

Paul Clark Drive, Olean, New York - 77043                       

 

 

Country :

United States                

 

 

Date of Incorporation :

1987

 

 

Legal Form :

Joint Venture

 

 

Line of Business :

The Company manufactures turbine engines.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

IDENTIFICATION & EXECUTIVE SUMMARY

 

Company Name:            DRESSER RAND COMPANY

Address:                       PAUL CLARK DRIVE

City:                             OLEAN                       

State/Province:              NEW YORK                             

Zip Code:                      77043                        

Country:                                    UNITED STATES               

Telephone:                    713-467-2221                

Facsimile:                     713-935-3490                   

Founded (D/M/Y):          /  /1987

As of:

Sales / Revenue:

Net Income:

Total Equity:

Number of Employees:   1,500

Legal Form:                   Joint Venture

Website:                       www.dresser-rand.com

Business Activity:          The Company manufactures turbine engines.

 

 

NOTE TO CLIENT

 

Person Contacted: Ms. Robin Frost, Accounts Payable Clerk

 

Management provided information and requested a written inquiry for Mr. William E. Macaulay, Chairman of the Board. If pertiment information is received, the report will be amended.

 

 

LEGAL

 

Legal Form: Joint Venture

Previous Legal Form:

 

Company is NOT required to publish an annual financial report.

 

In 1987, Ingersoll-Rand and Dresser Industries formed a partnership joint venture, combining their related businesses and forming Dresser-Rand Company.  Five years later the partnership was realigned, giving Dresser Industries 51 percent ownership, and Ingersoll-Rand the balance. In 1998, Dresser merged with Halliburton and is now known as Halliburton Company.  In 2000, Halliburton sold its interests in Dresser-Rand to Ingersoll-Rand.  And then in 2004, Ingersoll-Rand sold Dresser-Rand to First Reserve Corporation, the leading private equity firm specializing in the energy industry.

 

 

Managers/Key Personnel

 

Mr. William E. Macaulay                        Chairman Of The Board Of Directors

Mr. Vince Volpe                        President

 

 

 

 

 

AFFILIATED ENTITIES

 

Jurisdiction

 

D-R Central Service GmbH &  Co. KG                              Germany

D-R Holdings (France) S.A.S.                                         France

D-R Holdings (Germany) GmbH                                       Germany

D-R Holdings (Netherlands) B.V.                                     Netherlands

D-R Holdings Norway AS                                                Norway

D-R Holdings (U.K.) Ltd.                                                 United Kingdom

D-R International Sales LLC                                            Cayman Islands

D-R Management GmbH                                                 Germany

D-R Nadrowski Holdings GmbH                                       Germany

D-R Steam LLC                                                             United States of America

Dresser-Rand (Nigeria) Ltd.                                             Nigeria

Dresser-Rand (SEA) Pte. Ltd.                                         Singapore

Dresser-Rand (U.K.) Ltd.                                                United Kingdom

Dresser-Rand AS                                                                       Norway

Dresser-Rand Asia Pacific Sdn. Bhd.                               Malaysia

Dresser-Rand B.V.                                                                     Netherlands

Dresser-Rand Canada, Inc.                                             Canada

Dresser-Rand CIS                                                                      Moscow

Dresser-Rand Comercio e Industria Ltda.                         Brazil

Dresser-Rand Company Ltd.                                           United Kingdom

Dresser-Rand Compressor (Suzhou) Ltd.                         China

Dresser-Rand de Mexico S.A. de C.V.                             Mexico

Dresser-Rand de Venezuela, S.A.                                   Venezuela

Dresser-Rand do Brasil, Ltda.                                         Brazil

Dresser-Rand Global Services, LLC                                 United States of America

Dresser-Rand GmbH                                                      Germany

Dresser-Rand Holding (Delaware) LLC                              United States of America

Dresser-Rand India Private Limited                                  India

Dresser-Rand International B.V.                                      Netherlands

Dresser-Rand Italia S.r.l                                                  Italy

Dresser-Rand Japan Ltd.                                                Japan

Dresser-Rand LLC                                                          United States of America

Dresser-Rand Machinery Repair Belgie N.V.                     Belgium

Dresser-Rand Nadrowski Turbinen GmbH                         Germany

Dresser-Rand Overseas Sales Company Ltd.                   United States of America

Dresser-Rand Power LLC                                                United States of America

Dresser-Rand S.A.                                                                     France

Dresser-Rand s.r.o.                                                        Czech Republic

Dresser-Rand Sales Company S.A.                                 Switzerland

Dresser-Rand Services B.V.                                            Netherlands

Dresser-Rand Services, S. de R.L. de C.V.                      Mexico

Dresser-Rand Services, S.a.r.l                                        Switzerland

Dresser-Rand Thailand, LLC                                            United States of America

PT Dresser-Rand Services Indonesia                               Indonesia

Turbodyne Electric Power Corporation                              United States of America

 

Parent Companies

 

Parent Company: Dresser Rand Group Inc.

 

Ultimate Parent:   First Reserve Corporation

 

 

 

Dresser Rand Group Inc., Parent Company Financials (thousands of $US)

 

 Period Ending:                     12/31/2006         12/31/2005

 

 Total Revenue                      1,501,527           1,208,203

 

 Net Income                            78,759              37,095

 --

 Current Assets                       669,032             549,415

 Total Assets                       1,771,329           1,657,871

 Current Liabilities                  471,500             393,180

 

 Total Liabilities                  1,139,458           1,143,211

 Total Equity                         631,871             514,660

 --

 Stock

 Recent Closing Price:             US $ 35.10

 

Exchange:                                 New York Stock Exchange

Ticker Symbol:                          DRC

52 Week High/Low:                                $41.83/$18.03

Shares Outstanding:                              85,828,000

 

 

BANKS

 

JP Morgan Chase Bank

NY

Telephone:

Facsimile:

Account Number:

Account Manager:

 

The bank requires a signed authorization and an account number which could not be obtained.

 

 

PAYMENT HISTORY

 

 BUSINESS   DATE  LAST  PAYMENT CREDIT   BALANCE  CUR 1-  31- 61-

 CATEGORY   REPTD SALE  TERMS      $        $      %  30  60  90  91+ COMMENTS

 ---------- ----- ----- ------- -------- -------- --- --- --- --- --- --------

 AIR TRANS  07-06 00-00 0000000 1200     300      100 0   0   0   0   CUST 19 YR

 CONSTRUCTN 07-08 00-00 NET 30  0        0        0   0   0   0   0

 

 ELEC DISTR 07-07 07-06 VARIED  400      0        0   0   0   0   0

 ELEC EQUIP 07-07 00-00 NET 30  5500     0        0   0   0   0   0   CUST 10 YR

 FINCL SVCS 07-08 00-00 NET 30  100      0        0   0   0   0   0

 FOOD DISTR 07-06 07-05 NET 30  3700     500      0   100 0   0   0

 FREIGHT    07-04 07-03 VARIED  9500     500      83  17  0   0   0

 FRGHT FWRD 07-08 07-08 NET 30  0        0        0   0   0   0   0

 FRGHT FWRD 07-07 06-06 NET 30  200      0        0   0   0   0   0   CUST 34 YR

 GENL MERCH 07-06 06-02 CREDIT  5000     0        0   0   0   0   0

 INDUS SUPL 07-08 00-00 VARIED  0        0        0   0   0   0   0

 IRON& STEEL 07-08 00-00 NET 30  19600    6700     100 0   0   0   0

 MANUFCTRNG 07-07 07-05 NET 30  85100    28700    0   100 0   0   0

 MANUFCTRNG 07-07 07-07 NET 30  52500    52300    99  1   0   0   0   CUST  1 YR

 METAL DIST 07-05 00-00 VARIED  0        0        0   0   0   0   0   CUST 26 YR

 MISC MANUF 07-04 07-03 VARIED  103400   600      0   46  0   0   54

 PACKAGING  07-08 00-00 NET 30  900      300      100 0   0   0   0   CUST 13 YR

 PAPER DIST 07-08 07-07 2/20N21 0        0        0   0   0   0   0   CUST  1 YR

 PREC INSTR 07-08 07-07 NET 30  100000   7000     0   35  57  0   8

 SAFTY PROD 07-05 00-00 NET 30  600      0        0   0   0   0   0   CUST 12 YR

 SAFTY PROD 07-07 03-05 NET 30  0        0        0   0   0   0   0   CUST 12 YR

 TRUCK DLR  07-08 00-00 CONTRCT 1600     1400     0   0   0   0   100

 WELDING    07-05 07-03 N10PRXO 16300    300      38  45  6   4   7

 AIR TRANS  06-11 00-00 NET 30  17000    17000    90  1   0   2   7   CUST 26 YR

 BUS SERVCS 07-03 00-00 NET 7   6400     1300     100 0   0   0   0

 COMPUTERS  06-06 06-03 0000000 3300     0        0   0   0   0   0

 CONTRL DEV 04-12 04-12 NET 30  238000   22200    100 0   0   0   0

 DISTRIBUTR 07-02 00-00 1/10N30 0        0        0   0   0   0   0

 ELEC DISTR 05-01 00-00 NET 30  800      800      0   0   100 0   0

 ELEC MFG   06-09 00-00 VARIED  368800   362200   100 0   0   0   0   CUST 24 YR

 ELEC SUPLR 04-08 01-07 2/10N30 0        0        0   0   0   0   0

 ELEC SUPLR 05-04 00-00 VARIED  0        0        0   0   0   0   0

 ELEC SUPLR 06-01 00-00 NET30   36600    6000     0   7   93  0   0

 FACTOR     06-06 00-00 NET 30  0        0        0   0   0   0   0

 FACTOR     05-11 03-01 NET 30  0        0        0   0   0   0   0

 FACTOR     07-02 00-00 NET 30  0        0        0   0   0   0   0

 FRGHT FWRD 05-07 00-00 NET 30  2900     1000     0   0   0   0   100

 LEASING    05-02 00-00 NET 30  0        0        0   0   0   0   0

 LEASING    05-05 00-00 CONTRCT 15400    0        0   0   0   0   0

 METAL DIST 05-07 05-06 5/10N30 69100    300      0   100 0   0   0

 MISC MANUF 06-09 06-09 VARIED  32200    32200    41  53  6   0   0   CUST 38 YR

 PAINTS     04-12 00-00 VARIED  200      200      100 0   0   0   0

 PREC INSTR 04-09 00-00 NET 30  0        0        0   0   0   0   0

 TRANSPORTN 04-10 04-08 NET 30  9700     2900     0   0   100 0   0

 CURRENT QUARTER                405600   98600    61  33  4   0   2

 

 Payment Trends

            INDUSTRY     BUSINESS        BALANCE  CUR 1-  31- 61-

 DATE      CUR    DBT       DBT             $      %  30  60  90  91+

 --------  ---    ---       ---          -------- --- --- --- --- ---

 20070800  0      6         8            95100    61  37  0   0   2

 20070700  0      7         13           107000   32  64  0   2   2

 20070600  0      6         17           90600    9   85  3   0   3

 20070500  0      5         8            105600   66  31  0   0   3

 20070400  0      5         9            80000    69  23  4   1   3

 20070300  0      6         15           53200    50  34  11  0   5

 

 Payment History - Quarterly Averages

                                         BALANCE  CUR 1-  31- 61-

 QUARTER  YEAR              DBT             $      %  30  60  90  91+

 -------- ------            ---          -------- --- --- --- --- ---

 Second   2007              13           100400   36  59  1   1   3

 First    2007              10           94000    57  36  5   0   2

 Fourth   2006              10           134400   44  53  2   0   1

 Third    2006              13           74100    59  20  19  2   0

 Second   2006              28           64200    12  50  28  9   1

 

 

 

 

 

 

FINANCIAL INFORMATION

 

Management has not returned financial data and outside sources provided no insight into the financial condition of the Company. Dresser Rand Group Inc. reports the Subject as a subsidiary. Therefore, all financial statements of Dresser-Rand Company are consolidated into those of Dresser-Rand Group Inc. which are summarized above.

 

 

HISTORY

 

The following statement was retrieved from Dresser-Rand Group, Inc.'s 2006 Annual Report and has been presented exactly as printed:

 

Our predecessor company was initially formed on December 31, 1986, when Dresser Industries, Inc. and Ingersoll Rand entered into a partnership agreement for formation of Dresser-Rand Company, a New York general partnership owned 50% by Dresser Industries, Inc. and 50% by Ingersoll Rand. On October 1, 1992, Dresser Industries, Inc. purchased a 1% equity interest from Dresser-Rand Company. In September 1999, Dresser Industries, Inc. merged with Halliburton Industries, and Dresser Industries, Inc.’s ownership interest in Dresser-Rand Company transferred to Halliburton Industries. On February 2, 2000, a wholly-owned subsidiary of Ingersoll Rand purchased Halliburton Industries’ 51% interest in Dresser-Rand Company. On August 25, 2004, Dresser-Rand Holdings, LLC, our indirect parent and an affiliate of First Reserve Corporation (“First Reserve”), entered into an equity purchase agreement with Ingersoll Rand to purchase all the equity interests in the Dresser-Rand Entities for approximately $1.13 billion. The acquisition closed on October 29, 2004.

 

 

CURRENT OPERATIONS

 

NAICS Code:   33        Mfg- Metals, Machinery, Appliances, Furniture, Equ

 

Number of Employees:           1,500  

 

Business Activity:

The Company manufactures turbine engines.

 

The Subject manufactures centrifugal and reciprocating compressors, steam turbines, expanders, gas turbine packages, and control systems. Sales are to the oil and gas, chemical, and petrochemical industries on an international basis.

 

The Company owns the headquarters facility in New York. According to management, there re branches in Brazil.

 

 

GENERAL COMMENTS

 

Dresser-Rand Company is a well established joint venture, engaged as a manufacturer of centrifugal and reciprocating compressors, steam turbines, expanders, gas turbine packages, and control systems   The payment record is considered to be generally satisfactory and a search of public and bankruptcy courts provided no derogatory information or a bankruptcy petition being file in the Subject's name.

 

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions