Geneva - Small and medium-sized enterprises (SMEs) in Switzerland were hit harder than expected in the first quarter of 2009, with no recovery imminent, a survey of companies by the Swiss bank UBS said Thursday.

"Sales dropped year-on-year, profits plunged and sales prices fell for the first time since the start of 2006," UBS said in a statement announcing the results, released every quarter. "No turnaround is expected for the second quarter."

UBS surveyed 600 small and 170 large companies for comparison. The SMEs surveyed did not anticipate a better second quarter and expected sales and profits to decline.

The companies said they were reducing their workforces due to the decline, a result of the global economic downturn.

Industrial SMEs were particularly affected, with fewer new orders coming in, affecting especially the volume of overseas orders.

Overall, Swiss SMEs "had to stomach a hefty drop in export sales."

However, the grim outlook was not due to a credit crunch, UBS said, noting that SMEs in most sectors were not reporting declining access to loans.

The UBS SME barometer, researched with the Swiss Industry and Trade Association, forecast drops in sale prices, profits, employment and the overall business climate in the second quarter of 2009.

SMEs in the manufacturing expected a somewhat worse business climate than those in the services sector.

The World Trade Organization has predicted a 9 per cent decline in global trade this year due to the poor economic conditions and a credit crisis affecting short term loans in some regions and sectors. (dpa)