case studies - Dresser-Rand

TABLE OF CONTENTS
Overview
Dresser-Rand at a Glance ...............................IFC
Overview ........................................................... 1
CEO Letter ......................................................... 2
Corporate Vision, Mission,
Guiding Principles, and Values ........................... 3
Our Approach to Sustainability ......................... 4
Our Sustainability Principles .............................. 5
Stakeholder Engagement .................................... 6
Key Issues ............................................................ 7
Environment .................................................... 10
Climate Change ................................................ 12
Driving Efficiency in
Our Clients’ Operations ................................... 14
Operational Excellence in
Our Operations ................................................. 16
Society .............................................................. 18
Localization ......................................................20
People ................................................................22
Health & Safety ................................................24
Community ......................................................26
Suppliers ............................................................ 29
Using Technology to Improve Lives .................30
Governance ...................................................... 32
Our Approach to Governance ..........................34
Global Reporting Initiative (GRI) Index .........38
DRESSER-RAND
SUSTAINABILITY COUNCIL
Asier Alea
Business Development Manager—
Environmental Solutions
Blaise Derrico
Vice President, Investor Relations
Brad Dickson
Vice President, Chief Marketing Officer
Mark Mai
Vice President, General Counsel & Secretary
Ken Marcia
Vice President, Worldwide Supply Chain
& Process Innovation
Jim Methven
Director, Global Singular Processes
Gustavo Nechar
Vice President, Human Resources
Jesus Pacheco
Executive Vice President, New Equipment
Worldwide
Peter Salvatore
Vice President, Chief Safety Officer
Greg Stubbs
Senior Manager, Sustainability &
HSE Process Innovation
The Dresser-Rand Sustainability Council represents a
cross-functional team of senior managers and executive
leaders chartered by our CEO with board oversight. The
council is charged with developing a sustainability strategy
of competitive advantage that engages opportunities of
shared value for Dresser-Rand and its stakeholders. We wish
to thank Jim Methven, Ken Marcia and Jesus Pacheco for
their valuable input over the last three years, and welcome
Ann Ackerson, vice president, Supply Chain, and Scott Wisler,
director, Centers of Technical Excellence, to the Council.
On the cover: Dresser-Rand supplied this
turbine generator set to Portugal in 2007.
The plant burns 13 tonnes/hr of a forestry
residue/cork dust biomass mixture,
producing power for the grid.
ECONOMIC IMPACT
($ in millions, except EPS) 2011 2010 2009 2008
Revenue $2,311.6 $1,953.6 $2,289.6 $2,194.7
Cash flow from operating activities 108.1 375.6 129.8 234.8
Net income 119.7 146.7 210.8 197.7
Diluted earnings per share 1.53 1.80 2.57 2.36
Annual shareholder return:
DRC 17.1% 34.7% 83.0% -55.5%
S&P 500 0.0% 12.8% 15.2% -36.8%
PHLX Oil Service Sector Index -11.5% 25.8% 61.6% -59.9%
Wages and benefits $657.4 $574.2 $562.6 $534.5
Taxes paid $47.4 $111.5 $129.1 $109.1
EC1 & EC3 GRI METRICS
Revenue $2,311.6 $1,953.6 $2,289.6 $2,194.7
Operating costs 1,397.1 1,116.9 1,377.1 1,328.1
Selling & administrative expenses 364.6 300.5 287.3 273.8
Employee compensation (wages
& benefits)
657.4 574.2 562.6 534.5
Donations & other community
investments
698.9 293.0 392.0 411.0
Retained earnings (end of period) 904.5 784.8 638.1 427.3
Payments to capital providers
(cash paid for interest)
62.2 31.7 31.1 33.9
Payments to governments (gross taxes) 47.4 111.5 129.1 109.1
Coverage of defined benefit plan obligations Refer to 2011 10-K notes 11 & 12
OPERATING COSTS:
Cost of sales $1,662.3 $1,366.7 $1,632.1 $1,576.1
Selling & administrative expenses 364.6 300.5 287.3 273.8
Research and development expenses 27.6 23.9 20.3 12.7
Employee compensation
(wages & benefits)
(657.4) (574.2) (562.6) (534.5)
Total operating costs $1,397.1 $1,116.9 $1,377.1 $1,328.1
ENDING HEADCOUNT
Asia Pacific 524 500 414
Europe 2,099 1,472 1,498
Latin America 726 145 191
Middle East/Africa 104 91 29
North America 4,053 3,944 3,977
Grand total 7,506 6,152 6,109
HEADCOUNT PERCENT BY REGION
Asia Pacific 7.0% 8.1% 6.8%
Europe 27.9% 23.9% 24.5%
Latin America 9.7% 2.4% 3.1%
Middle East/Africa 1.4% 1.5% 0.5%
North America 54.0% 64.1% 65.1%
Total 100.0% 100.0% 100.0%