Compared with the corresponding period last year, Group order intake in the first quarter of the financial year was up 17% at actual exchange rates and was flat at constant exchange rates.
In our new Invensys Operations Management (IOM) division, the integration of our industrial automation businesses is proceeding well and we have appointed Sudipta Bhattacharya, formerly President of Wonderware, to lead the division. The pipeline of order prospects in projects and solutions remains strong though we are continuing to experience reduced volumes in the short-cycle products business, which will have an impact upon first half performance. However we expect the second half to benefit from our large order pipeline, the IOM integration and the increasing effects of cost reduction initiatives.
Invensys Rail continues to perform well in our core markets and our pipeline of order prospects in export markets remains strong. In addition, we are focussed upon pursuing the opportunities in countries implementing significant rail infrastructure stimulus packages.
Invensys Controls has seen some stabilisation in demand in North America in recent weeks and is experiencing declines within its European operations. Overall we continue to expect that the division will be profitable for the year with positive cash flow.
Financial Position
At 30 June 2009, the Group had net cash and deposits of £277 million, a £32 million reduction in the quarter, with good operating cash conversion of around 100% offset by the effect of currency translation and the payment of non-operating items including restructuring, taxation and part of the Baan minority
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