Nortel reports loss of $5.8bn for 2008

Nortel has more bad news for shareholders

Communications giant Nortel had more bad news for its shareholders today, after announcing a loss of $5.8bn (£4.1bn) for 2008.

The Canadian telecoms equipment manufacturer, which entered into administration in January, has already revealed large-scale job cuts in an effort to reduce costs.

But the reported $5.8bn loss, representing $11.64 (£8.27) per share, compared with a loss of $957m (£680m) or $1.98 (£1.40) per share in 2007, will be a major blow to its plans to emerge from bankruptcy protection as a viable business.

Fourth-quarter revenue fell 15 per cent to $2.72bn (£1.9bn) from $3.2bn (£2.3bn) in the same quarter in 2007.

"As Nortel continues to work through a complex global restructuring of its business, our focus remains firmly on maintaining high customer service levels for on time delivery, network stability and responsiveness," said Nortel president and chief executive Mike Zafirovski.

"Work is taking place across Nortel to develop a comprehensive plan to restructure Nortel into a more focused, leaner and more competitive company."