Philips records £1.1bn loss

Philips has recorded 1.3bn euros (£1.13bn) quarterly net loss, and has said it will cut costs by 500m euros.

It said the slower-than-expected economic recovery had taken its toll on the company.

A year ago it made a net profit of 262m euros.

Writedowns at its healthcare and lighting divisions came to 1.4bn euros.

It said "results were impacted by near-term operational challenges, weaker markets and a significant impairment charge".

In May it warned of sharply lower second-quarter profits and slowing sales growth.