The Irish operation of Dutch electronics giant Philips said it remains on target to create around 120 jobs over the next years, despite its parent posting a second quarter net loss of #770 million (£606 million), compared with a profit of #3.6 billion a year ago.

Excluding special charges and one-off gains, the second-quarter figure came in at a loss of #348 million ($298 million) versus the #699 million profit of a year ago.

Philips also said it could report its first annual loss in nine years as the global chip and telecom industry downturn accelerates.

It said it would cut 3,0004,000 jobs in its semiconductor unit in the second half, pushing total job losses for the year to well over 10,000.

But Mr Larry Keaveney, company secretary with Philips Electronics (Ireland) said its Silicon and Software Systems subsidiary in Leopardstown in Dublin would be hiring more than 100 new employees over the next few years.

"The company is linked with Philips research and it is a commercial organisation that sells its design facilities to Philips and third parties," he said. "If you look at the losses, most of them were in semiconductors and components, and the closing of manufacturing facilities were in consumer communications. We don't deal here with semiconductors and components."

Philips' Irish operation also handles the European accounting operations for the company's consumer electronics division. Mr Keaveney said he expected numbers in this operation to rise by 20 to 180 by the end of the year. He also said sales in its consumer electronics business in Ireland were up by 25 per cent.

For the second half, Philips expects to take additional restructuring charges of #250300 million, bringing the total for the year to #1 billion.

It said third-quarter losses would be no more than 10 per cent worse than those in the second quarter.

Philips said that before the special charges, it expected its net income for the year to be at break-even or a small loss.