Ericsson says it has seen no sign of an upturn in the telecommunications sector. The company has not received a significant increase in orders, and expects it will have to cut costs further in response to the continuingly weak demand.
The Swedish telecoms manufacturer is to persist with its goal of achieving a 5% operating margin this year. The company is aiming to return to profitability in 2002 after reporting its first annual loss in the previous year.
Ericsson believes that the business will improve in the second half of 2002, although it expects sales of mobile systems to be flat or up to 10% lower.