Electronics giant Philips has recorded yet another quarterly loss, but once again stressed its hopes of reaching profit for this year as a whole.

The firm, Europe's biggest electronics manufacturer, lost a net 330m euros (�209m; $326m) during the three months to end-September.

But while the firm mentioned continuing difficulties with trading conditions, most of its loss was the result of the decreased value of its stake in troubled media firm Vivendi Universal.

For 2001 as a whole, Philips lost 2.6bn euros, mainly thanks to the slump in demand for semiconductors, one of its core products.

Back in control

Philips now claims to have come to terms with most of the fundamental problems afflicting its core markets.

"Underlying performance in our businesses has improved, as a result of cost controls and better operating efficiencies, which is fundamental as we do not see much of an economic improvement in the near future," chief executive Gerard Kleisterlee said in a statement .

The firm has aggressively restructured some of its worst-hit businesses, slashing capacity in semiconductors and selling businesses worth some 1bn euros this year.

Combined with the usual seasonal uptick in demand, the company should record a modest net profit this year, Mr Kleisterlee reiterated.