But the local engineering forecasts improved market conditions.
CEO Raymond MichovichFoster Wheeler AG today reported a slight decline in first-quarter earnings while forecasting economic improvement in months ahead. Shares fell in afternoon trading.The engineering and construction company reported earnings of $72.1 million, or 56 cents a share, for the quarter ended March 31. That’s down from net income of $72.9 million, or 57 cents a share, in the first quarter of 2009.
Revenue fell 25 percent to about $945 million from $1.26 billion in the year-ago quarter.
“Net income in the first quarter of 2010 was below the average quarter of 2009 due mainly to lower revenues, reflecting weaker market conditions that we began to experience in the middle of 2008. Still, in this environment, both of our business groups demonstrated commercial and operating excellence during the quarter," CEO Raymond Milchovich said in a statement.
Looking ahead, Milcovich said, “We are encouraged by signs of potentially improving markets.”Milchovich added that the company’s global power group is receiving new orders while its engineering and construction division sees improved market conditions in Asia and South America.
Net income for the first quarter also included a one-time gain of $14.5 million, or 11 cents a share, related to curtailment of a pension plan.
Foster Wheeler builds and designs power plants, boilers and refineries for customers around the world. Incorporated in Switzerland, the company maintains domestic operations in Union Township, Hunterdon County.
Shares of Foster Wheeler fell $1.48, or 5.1 percent, to $27.31 in afternoon trading.