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Flood disrupts operations at Dresser-Rand plant in Wellsville, New York

A creek adjacent to Dresser-Rand's Wellsville facility in New York overflowed its banks and flooded the manufacturing portion of the facility with up to two feet of water, mud and silt in various parts of the building, the company said on Friday afternoon.

The main office was unaffected.

Dresser-Rand describes itself as one of the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries.  

All personnel evacuated the facility safely. Local management has implemented its existing business continuity plan and is addressing the needs of various functional areas and stakeholders, officials said.

Plant personnel are currently implementing plans for the resumption of facility-wide operations. Certain parts of the facility have already resumed operations, with the vast majority of the manufacturing centers expected to come back up successively by the middle of June.

The company said it believes that the impact on its operating results for the full year 2011 will be immaterial as the financial loss is currently expected to be principally confined to its insurance deductible of $2.5 million.

As to the second quarter 2011, Dresser-Rand said it currently estimates that its operating income is likely to be reduced by $12 to $15 million, net of recordable amounts for insurance recoveries.

Approximately half of the impact to the second quarter is the result of one-time costs associated with restoring operations and the balance is attributable to the deferral of certain shipments to future periods.

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