Alcatel-Lucent on Friday reported its biggest quarterly loss since its creation in 2006, scrapped its dividend and substantially wrote down the value of the Lucent Technologies wireless network assets.

Patricia Russo, chief executive, warned that the outlook for the group, the world’s largest telecoms equipment manufacturer, remained uncertain, that it would have an operating loss in the first quarter and forecast adjusted operating margins of between 2.5 per cent and 5 per cent for 2008.