DUTCH electronics giant Philips, hit by lower prices, posted a big second quarter net loss yesterday, said it would cut 6,000 jobs at its Sound & Vision business and warned of lower full year net from normal operations.

Europe's biggest electronics firm had a second quarter net loss of 456 million guilders (£169.5 million), the result of a fall in net profit from normal operations to 304 million guilders from 583 million and a swingeing net 760 million guilder charge to restructure Sound & Vision.

This resulted in a total second quarter net loss per share of 1.33 guilders against a previous gain of 1.72 guilders.

Industry analysts had expected second quarter net from normal operations of between 360 million and 465 million guilders.

As part of the restructuring, Philips said it would cut 6,000 Sound & Vision jobs over the next 18 months.

"There will be a net reduction of employees of 6,000," finance chief, Mr Dudley Eustace told a news conference. "The payback should be 18 months.

"It's our responsibility as a board that when we have programmes such as this, which are so serious, that we come out and advise the world at large... that we're tackling it right away," Mr Eustace said.

He declined to be drawn on where the jobs axe would fall but said major areas would include industrial processes.

Out sourcing would be a key part of the restructuring, he said. "Major parts of the business will be out sourced and they will be outsourced to lower cost countries... both here in Europe and in Asia," he told reporters, declining to elaborate.

The group's consumer products division, which includes Sound & Vision, employs around 70,000 worldwide.

Over the last six years, Philips has shed some 40,000 jobs worldwide as part of a strategic streamlining programme. At the end of June, the group's global workforce stood at almost 275,000.

Industry analysts, who had anticipated some sort of restructuring at consumer products when chairman designate Mr Cor Boonstra takes over in October, were mildly bullish over the news.

It's positive that it (restructuring) has come sooner rather than later," said Mr Simon Street, London based analyst at investment bank BZW. "It's not just a case of taking more costs out it is whether they have a plan to grow the business profitably."

Philips also confirmed market concern that the full year results would be disappointing.

"We confirm our earlier expectation that comparable sales growth in 1996 will not be as strong as in 1995," it said.

"We expect net income from normal business operations for full year 1996 to be below 1995, despite an anticipated improvement in income from operations in the second half of this year compared to the same period of 1995," it added.

Second quarter turnover rose to 16.17 billion guilders from 14.66 billion.

Total first half net income slumped to 236 million guilders from 1.33 billion guilders in the 1995 January June period. Net income from normal business operations fell to 681 million guilders in the first half from 1.13 billion a year earlier.