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Management’s statements may include non-GAAP financial measures. For a reconciliation of these measures, refer to our earnings news release, or the conference slides available on our website. Dresser-Rand does not undertake any ongoing obligation, other than that imposed by law to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after this call. Further information concerning issues that could materially affect the financial performance related to forward-looking statements can be found in Dresser-Rand's periodic filings with the SEC.I'll now turn the call over to Vince Volpe, our President and CEO. Vincent Volpe Thank you, Blaise. Thank you for joining us today and welcome to Dresser-Rand’s earnings conference call. I'll start with a few opening comments, and Mark Baldwin, our Chief Financial Officer, will follow me with a detailed discussion of our fourth quarter results. Please turn to slide three. We’re generally pleased with the company’s overall performance in 2011, especially the record level achieved for both the new unit and aftermarket bookings. For the full year 2011, our operating income was $257 million which was slightly above the midpoint of the guidance disclosed in our pre-release. We believe our 2011 performance was good given the series of challenges that impacted our results, including the flood at our facility in Wellsville, New York, the non-recurring integration and transaction related expenses in connection with our acquisition of Grupo Guascor, the continued political instability in the Middle East and North Africa, primarily in Libya, and a one-time cost associated with the refinancing our senior subordinated notes. From a strategic standpoint, we achieved a number of important initiatives, including our acquisition of Guascor, our investment in Echogen power systems, the refinancing of our long-term debt, securing a new $1.1 billion senior secured credit facility and executing three stock repurchase programs totalling $504 million. We also made progress advancing our technology platform extensions, namely the marinization of our integrated compressor system and Ramgen’s supersonic shock wave compressor.
Please turn to slide four. Earlier this year, we acquired a technology development company Synchrony which brings us a portfolio of world class technologies and products, including active magnetic bearings, high-speed motors and generators and power electronics for clean efficient and reliable rotating machinery. Several years ago we identified the strategic importance of being able to offer oil free solutions and high-speed rotating equipment applications through the use of active magnetic bearing technology.The overall value proposition for eliminating our auxiliary oil systems centers around three principles. First, reduced footprint and weight in platform and FPSO applications which generates overall CapEx savings in the construction phase. Second, oil-lubricated bearings in subsea applications are neither practical nor reliable, and lastly, lubrication oil in compressor and steam turbine applications in general needs to be reconditioned and ultimately discarded as it is mixed with process gas or steam, thus making it environmentally unfriendly. We believe that the seamless integration of oil free solutions into our product development process will provide us with the ability to continuously improve our overall equipment designs, and is the fastest and least expensive way to add this capability in our product offering. Please turn to slide five. Total bookings for 2011 of $2.9 billion, which is a record level, are 28% higher than those of 2010. Approximately 41% of our 2011 bookings were for upstream applications, 12% for midstream, 27% for downstream, 17% for environmental solutions and approximately 3% for applications in general industry and the U.S. Navy. An increasing percentage of our new unit bookings involved projects outside North America and we expect this trend to continue. Please turn to slide six. New unit bookings totaled to $1.5 billion, a record and an increase of 24% compared with 2010, including approximately 86% in our traditional oil and gas markets and 9% for the environmental solutions applications. New unit bookings finished the year consistent with the disclosure in our pre-release. Read the rest of this transcript for free on seekingalpha.com