The company recorded significant decline in its new orders recorded for financial year 2008. The Global E&C Group’s new orders, measured in future revenues, decreased to $2,707.5 million in fiscal year 2008, as compared to $6,874.6 million in fiscal year 2007. These new orders are inclusive of estimated flow-through revenues of $604.6 million and $4,723.8 million for fiscal years 2008 and 2007, respectively. The Global Power Group’s new orders decreased to $1,348.5 million in fiscal year 2008, as compared to $2,008.2 million in fiscal year 2007. The company’s new orders in fiscal year 2008 were impacted by the delays in some of the power markets that it serves.

The company also received new contracts in the previous two months. For instance in March 2009, Foster Wheeler won a contract by Indian Oil Corporation (IOCL) for a grassroots refinery at Paradip, Orissa State, India. As per the contract, Foster Wheeler will act as the Project Management Consultant for the major part of the development of the new 15 million tons per annum refinery and also execute the engineering, procurement and construction management (EPCm) for fifteen of the key refinery process units of IOCL. In the same month, Foster Wheeler South Africa (Pty) Limited, a subsidiary of Forster Wheeler won a framework contract from Sasol Technology (Pty) Limited. Under this contract, Foster Wheeler will provide feasibility study, front-end engineering and design services as requested by Sasol.

These contracts reflect the company’s broad and deep refining expertise in executing the EPC phases of large, technically complex projects. But, these contracts are very insignificant when compared to total decline in the company’s order backlog, which indicates significant weakness in the company’s future revenue generation capacity. As result, most of the analysts on the street cut their profit estimates or price targets for the Swiss company, a day after it posted a strong increase in fourth-quarter profit.