Philips, which makes household electrical and medical equipment, reported a net loss of €1.35 billion for the second quarter, mainly because of asset depreciation, the group said.
The group booked depreciations totalling €1.39 billion in the second quarter. It also announced that it would spend €2 billion on buying back its own shares over the next 12 months, saying that this reflected its confidence in the prospects for growth.
The firm also announced a programme to reduce costs by €500m, and said it intended to raise sales by 4-6% by 2013.
'We do not expect a material improvement in the near term as operational risks and issues remain, and also considering the current uncertain economic environment,' the company's executive director Frans van Houten said.
Today's loss compared to a net profit of €262m the same time last year. Philips said that the television division had made a net loss of €97m, but that it had not included this in the second-quarter results. The group said in April that it had sold this business.
Sales in the second quarter fell by 2% to €5.21 billion but rose by 4% on a constant asset basis.
Philips, which employs 120,000 people, was centred for decades on making televisions and electrical devices for the home. About 10 years ago it began developing a medical equipment division, providing such material as scanners and lighting systems.
