UPDATE 1-Dresser-Rand profit flat as expenses rise

(Adds analysts' estimates, revenue, outlook)

NEW YORK, March 1 (Reuters) - Dresser-Rand Group Inc. (DRC.N) said on Thursday that fourth-quarter earnings were flat even as revenues rose, because of higher expenses.

The manufacturer of high-speed rotating equipment posted net profit of $32.8 million, or 38 cents a share, compared with $32.2 million, or 38 cents a share, in the same period the previous year.

The company said the results included 8 cents per share in non-cash compensation expenses resulting from the vesting of "exit units" held by certain members of management in connection with a sale of company stock.

The company also incurred transaction-related expenses of $1 million, or 1 cent per share.

Analysts on average were expecting 46 cents per share, according to Reuters Estimates.

Quarterly revenue rose to $475.7 million from $361.9 million a year ago.

Dresser-Rand also said it expects full-year 2007 earnings per share to be in the range of $1.52 to $1.73.

Analysts on average were expecting $1.62 per share, according to Reuters Estimates.