In a week abundant with quarterly financial reports, Foster Wheeler AG is the latest company to announce its most recent fiscal fortunes. But unlike those industrial gas firms that have demonstrated annual growth, Foster Wheeler has undergone significant financial decline.

Indeed, Foster Wheeler has reported net income for the first quarter of 2011 of $23m, or $0.18 per diluted share, compared with $72.1m, or $0.56 per diluted share, in the first quarter of 2010.

Commenting on the company’s result, Umberto della Sala, Foster Wheeler’s interim CEO, said, “Both of our business groups have continued to operate very well. However, relative to the average quarter of 2010, our net income in the first quarter of 2011 declined, as both business groups reported lower realised EBITDA margins, reflecting the as-booked margins on contracts that were awarded over the course of 2009 and 2010.$quot;

“Also contributing to the decline in net income relative to the average quarter of 2010 were lower volumes in our Global E&C Group and materially lower levels of profit enhancement opportunities in both groups.”

Della Sala concluded more optimistically, “Our financial results for the first quarter of 2011 were broadly in line with our expectations, and we anticipate marked improvement in the remaining quarters of this year.$quot;

Operating revenues revealed a less dramatic picture to net income. Foster Wheeler experienced a subtle consolidated increase from $946m achieved in the first quarter of 2010, to $1.04bn in the same quarter of this year. According to official financial statements, this incline was largely thanks to an increase in the volume of boiler work being executed.

Nevertheless, EBITDA was lower, halving from $111m to $47m between the first quarter of 2010 and quarter one of 2011. The firm attributed this depreciation to a number of factors; primary reasons being lower realised margins and a decrease in volume of work being executed.

Despite this news, della Sala qualified the fiscal reports with positive outlooks for the remaining 2011 quarterly periods. He said, “We continue to view 2011 as a transition year. We already see signs of the markets strengthening, and these improvements in our served markets are expected to have a stronger impact on backlog and revenue in the second half of the year.$quot;

With regards to the company’s Global Energy and Construction Group, the CEO remarked, “We believe scope revenue and scope backlog in 2011 will likely be above the level of 2010. We expect the full-year 2011 EBITDA margin on scope revenue to be in the range of 13-15%.$quot;

Della Sala was still more positive with regards to the Global Power Group: “We expect scope revenue to be up sharply in 2011 versus 2010. We also expect to see an increase in scope backlog at year-end 2011 versus 2010. We expect the EBITDA margin on scope revenue in 2011 to be in the range of 14%-16%.$quot;