Nokia's figures beat all forecasts

The Finnish company said both its sales and profits for the fourth quarter would be "significantly higher" than it had previously estimated.

Thanks to strong demand the firm said mobile phone sales had increased by 4% to 7bn euros ($8.9bn; �4.9bn).

Analysts had expected sales to be flat or only slightly higher.

Shares in Nokia closed up 13% on the Helsinki stock exchange.

Ringing endorsement

Jorma Ollila, the company's chairman and chief executive, said the sales upturn had exceeded Nokia's own projections.

He thanked the company's newest range of handsets, and ongoing investments made by the mobile phone network providers.

"The results were impacted by stronger than expected year-end operator investments and product mix, which resulted in much stronger than expected sales, and stronger than expected operating profits," said Mr Ollila.