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Philips reported 1.3 billion EUR loses for the second quarter

Philips reported 1.3 billion (1.8 billion) net loss for the second quarter. Only weeks ago the company warned of declining revenues from two of its main units for lower sales - for the production of medical equipment and consumer electronics. "This is a signal that demand does not recover," said Hans Slobo, an analyst at Rabobank. The CEO of the company Frans van Houten said the company does not expect improvement in the near future. For CNBC, however, van Houten said he sees good prospects in emerging markets. Because of poor performance Philips will begin implementing a program to cut costs by 500 million, which will continue until 2014, and redemption of shares of EUR 2 billion. Frans van Houten depressed and MTOs to Philips. In 2013, he expects 4-6 percent sales growth and 10-12% growth in profit before taxes and depreciation, writes Reuters.