Swedish telecoms equipment group Ericsson has said it sees no clear signs of a recovery in the hard-hit telecoms industry next year.
"No one can tell when we will see an end to the downturn," Ericsson chief executive Mr Kurt Hellstrom told a strategy and technology conference.
The bleak outlook drove the company's already languishing share down by as much as 11.6 per cent as Mr Hellstrom said Ericsson, which is already restructuring, was ready to take further action if needed to reach profitability.
"Our market environment has become even more uncertain and that's nothing we can do much about, but we can control our costs," Mr Hellstrom said.
Chief financial officer Mr Sten Fornell told the conference much needed to be done to reach positive cash flow for the full year 2001. He also said sales of high-speed GPRS (general packet radio service) phones were slower than expected.
Ericsson phones, known for their angular design and chunky external aerials, have been criticised for a focus on engineering and high-end functionality rather than user-friendly design, strong branding and consumer-oriented marketing.
In the second quarter, Ericsson regained the number three market-share spot from Germany's Siemens, which had briefly overtaken the Swedish company in the first quarter.