Alcatel-Lucent has reported a fourth-quarter net loss of €2.58 billion (£1.92 billion) after pricing down the value of its products.
The loss is more than double the €615 million figure (£458.61 million) 12 months ago.
Excluding the one-off price change costs, the net loss totaled €48 million (£35.79 million) or 5.8 per cent of the telecommunications equipment maker's revenue.
The loss reflects wider problems in the global economy stemming from the US mortgage meltdown and tightening of world credit markets.
“While the long-term prospects of our industry remain good, the macroeconomic environment has created uncertainty in our markets in the last few months," said Alcatel-Lucent chief executive Patricia Russo.
"This quarter, we delivered solid year-over-year revenue growth of 18.4 per cent with the strongest performance in the carrier and services businesses," she added.
The Paris-based manufacturer said much of the loss came from the devaluation of its wireless technology called code-division multiple access (CDMA), a digital cellular technology now used by many phone companies.
"The slower-than-expected ramp-up of revenues in WCDMA [an updated version of CDMA]… has severely impacted profitability," said Ms Russo.
Last Wednesday, the company announced a restructuring plan to axe jobs and rearrange its management scheme with hopes of cutting costs and increasing shareholder value.
The world's largest producer of telecommunications equipment has been among the worst performers on France's CAC 40 index, but has added nearly half a percentage point to trade at €4.15 (£3.09) per share this morning.
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz