Ericsson expects its Q3 sales to be lower than the previous quarter. In a statement the company said it expects sales and especially orders to decline from Q2 as a consequence of reduced investments by many of its customers.
Ericsson expects the market to remain uncertain with few signs of stabilizing in the near term. However, the company is optimistic about the demand for mobile systems in the longer perspective.
Ericsson has taken measures to reduce its cost base and improve working capital efficiency to establish a SEK 120 billion breakeven point. The company claims it has sufficient resources to fund its restructuring actions and cover its losses until it can return to profit sometime during 2003.