UPDATE 2-Metso sees satisfactory 2009 after Q1 profit drop

* Q1 EBIT falls to 58.6 mln euros after 22 mln one-off costs

* Analysts had forecast 78 mln before non-recurring items

* Q1 sales 1.22 bln euros, in line with avg poll forecast

* Repeats sees "satisfactory" 2009 profitability

(Adds details, quotes; updates share price)

By John Acher

HELSINKI, April 28 (Reuters) - Finnish engineering group Metso Oyj (MEO1V.HE) reported an in-line drop in operating profit for the first quarter on Tuesday and stuck to its forecast of satisfactory profitability in 2009.

"The overall market sentiment in our customer industries continues to be cautious," Chief Executive Jorma Eloranta said in a statement. "There have been some weak positive signals, but it is too early to say if this is enough to improve confidence levels and to start gradual recovery."

Eloranta told a news conference that such signs mainly consisted of renewed talks with customers about possible orders, which had been seen in China and other parts of Asia.

But he said in a conference call for analysts that not a single major order was received in the first quarter and he added: "I wouldn't be too hopeful in the second quarter about these negotiation processes."

Earnings before interest and tax (EBIT) at Metso, which supplies machinery to the pulp and paper industry and for mining and construction, slumped to 58.6 million euros ($76.3 million) in January-March from 119.6 million a year ago.

Adjusted for non-recurring costs of 22 million euros for restructuring, the result was roughly in line with the average forecast of 78 million in a Reuters poll of 12 analysts.

The company stood by its earlier guidance for net sales to exceed 5 billion euros in 2009 and for profitability to be satisfactory.

Eloranta declined to say what level of profitability would be considered "satisfactory", but he noted that for the full year 2008 the company's operating profit margin was just above 10 percent, which the company described as "good."

"We also expect our free cash flow to improve considerably in 2008 owing to the measures aimed at releasing net working capital," Metso said. "We expect our services business to remain satisfactory in 2009."

New orders in the first quarter dropped by 38 percent from the same quarter a year ago to 942 million euros, Metso said.