Telecoms equipment giant Alcatel posted an operating loss of €177 million in the second quarter.
Despite narrowing its losses mainly on the strength of its cost-cutting programme, Alcatel saw no signs so far of a turnaround in an industry crisis that has cut the value of its stock by two thirds so far this year.
The company's shares were briefly suspended limit-up on the results, which came as European markets broke out of a four-day selling rout. The shares rose 8 per cent to €6.09 after the delayed start.
It posted quarterly sales of €4.235 billion, down from €6.767 billion a year ago.
Ratings agencies Moody's and Standard & Poor's cut Alcatel's credit rating earlier this month to junk status, where it languishes with competitors Lucent Technologies and Nortel Networks.
Alcatel said it had taken an exceptional charge of €1 billion in the second quarter.