Philips has posted a net loss of Euro 160 million (around £134m) for the last three months of 2011 pitched against a Euro 465m profit a year earlier.

Lower earnings due to weak European sales and a higher loss from discontinued operations which included an after-tax loss of Euro 272m related to the TV business – Philips is currently pulling out of its TV operations - were largely blamed for the shortfall.

For the year as a whole, the company’s losses were Euro 1.29 billion against a profit of Euro 1.45bn in 2010 – its first annual loss since 2008.

Despite this, total group sales in the fourth quarter actually grew by three per cent to Euro 6.7bn.

Philips warned earlier this month that its fourth-quarter results would be disappointing.

“We are cautious about 2012 given the uncertainty in the global economy, and Europe in particular,” said chief executive Frans van Houten.

He added: “In addition, we expect our 2012 results to be affected by the previously communicated restructuring charges and one-time investments aimed at improving our business performance trajectory, as part of the multi-year Accelerate! programme.

“Excluding these additional charges, we expect the underlying operating margins and capital efficiency in the sector to improve in the latter part of 2012.”