Patek Philippe, one of the last remaining family owned Swiss watchmakers, said it was too early to call the end of the industry's downturn, even though Swiss watch exports have climbed gently since January.

Chairman Thierry Stern said in an interview at the Basel watch and jewellery fair that the 171-year-old company had been through too many crises to sing recovery quickly.

"I think we could still be in the middle of the tunnel," Stern said.

"It is too early to say that the crisis is behind us."

Even if watch retailers making orders at the Basel fair were more confident this year than last, Stern said the company had built up cash reserves in case demand remained sluggish for longer than expected.

His view contrasted with upbeat comments from other Swiss watchmakers in Basel in the past week, many of them part of the LVMH luxury goods group or Swatch Group, who said they expected 2010 to be a new record year.

Stern said Patek Philippe had sold fewer pieces in 2009 but for an overall bigger sum than in 2008.

He expected revenue again to rise this year but would steer clear of making any forecast.

The Swiss watch industry, which makes up seven per cent percent of the country's total exports, saw its exports rise 14.2 per cent in February after rising for the first time in over a year the previous month.

Stern's family, who bought Patek Philippe in 1932, has been running the company for three generations. Stern took over from his father in August.

The maker of classical watches, which start at €10,000 (Dh49,774) and can fetch €1 million, said some brands were wrong to bet so aggressively on economic giant China.

Since the downturn started to bite two years ago, the Asian country has become the biggest engine of growth for many European luxury goods makers.

"I am not in favour of opening as many shops as possible in China as some brands are doing right now in order to satisfy shareholders," Stern said.

"It is not wise to bet too much on China... China could suddenly close and impose higher tariff duties, you have to be cautious."

China was the last market Patek Philippe penetrated five years ago, Stern said.

Stern said the brand, which carries adverts saying "begin your own tradition", is going to maintain the same advertising strategy centred on the watch passed on through generations.

The company's advertising budget would also remain unchanged.

With market conditions improving, Stern said it was possible mergers and acquisitions could pick up again but few attractive watchmakers remained, he said.

"And we are not for sale, just like Chopard and Rolex," he added.