* ABB Q1 orders at $10.357 bln vs poll of $9.4 bln
* Demand seen helped by high oil prices, Japan disaster
* Sees positive signs of pick up in infrastructure spending
* Shares rise 1.6 percent, outperform market
(Adds new analyst, CEO & CFO comments, updates shares)
By Catherine Bosley
ZURICH, April 27 (Reuters) - Swiss engineering group ABB expects high oil prices and the Japanese earthquake to spur demand for energy-efficient equipment, helping it take in in more orders than anticipated in the first quarter.
ABB, whose products are used by oil, mining and utilities companies, saw signs of a pick up later this year in its infrastructure business, which makes components such as transformers for big building projects.
ABB depends heavily on infrastructure spending and, and it has been trying to keep a firm grip on costs to offset price pressures from emerging market competitors. It said these pressures have lessened of late.
Chief Financial Officer Michel Demare said rising commodity prices were at once both a source of new business and a cost challenge, and that he expected them to stay elevated.
"High commodity prices are obviously generating a lot of mining, metals activities," Demare said. "High oil prices are also generating a lot of investment in the area of renewables, energy efficiency."
The Zurich-listed firm said it expected emerging markets to drive growth in coming years but that demand from mature markets was also set to increase. In the first quarter, emerging market orders rose 22 percent while mature markets were up 27 percent from a year earlier.
"A very strong result. ABB sees a continued favourable market development," Christoph Ladner at Kepler Capital Markets said. "We confirm our 'Buy' rating."
Shares in ABB, which competes with Germany's Siemens, were up 1.6 percent at 0921 GMT, outperforming a 0.8 percent rise in the sector index.
NUCLEAR TO STAY
The damage to the nuclear plant in Japan last month has revived debate about energy policy in many countries, and in Germany has led to a policy reversal and an immediate shutdown of several nuclear plants.
Yet Chief Executive Joe Hogan said he believed the Fukushima disaster would not prompt a large-scale turn away from nuclear power, though it likely would lead to more careful risk assessments.
About 2-3 percent of ABB's revenues are linked to nuclear power.
"In general I think nuclear will go forward," he said. "In the context of CO2 reduction it's hard to move away completely from nuclear."
ABB has been on a buying spree over the past year and analysts have been keeping a close eye on the size of its war chest to help gauge where it might pounce next.
ABB had net cash of $2.2 billion at the end of the first quarter and CEO Joe Hogan said there was certainly room for more acquisitions, though the timing would be key, and that bolt-on buys were the most sensible.
"My priorities are always organic," he said. "But we obviously still have holes in our portfolio," both geographically and concerning the mix of products.
ABB reported first-quarter net income of $655 million dollars, weighed down by $107 million of charges related to its acquisition of Baldor Electric.
Analysts polled by Reuters had expected the firm to report a 48 percent rise in first-quarter net income to $687 million.
(Additional reporting by Rupert Pretterklieber; Editing by Erica Billingham)