NOKIA Oyj, the world's biggest maker of mobile phones, may report a third straight quarterly increase in profit after record shipments and increased market share.

Fourth-quarter net income probably rose 20 percent to 1.52 billion euros (US$2.21 billion), or 41 US cents a share, from 1.27 billion euros, or 32 US cents, a year earlier, according to the average estimates of 15 analysts in a Bloomberg News survey.

Sales may have risen 27 percent to 14.9 billion euros and shipments 23 percent to a record 130 million units.

Chief Executive Officer Olli-Pekka Kallasvuo raised Nokia's global market share close to 40 percent and increased margins with products ranging from phones costing less than US$50 to models with satellite navigation. The growth, which was boosted by Motorola Inc's difficulties in bringing out new models, may slow this year as the global economy cools.

"Nokia has been gaining across the board with Europe looking relatively strong," said Hannu Rauhala, an analyst at OKO Bank in Helsinki with an "accumulate" rating on the stock. "Everybody will eventually face limits to growth. The global economy is bit of a worry."

Adjusted for some one-time items, earnings may be 45 US cents a share, based on 29 estimates, up from 30 US cents a year earlier.

The report is due today. Nokia doesn't comment in the "silent period" ahead of earnings releases, spokeswoman Arja Suominen said.

In December, Nokia forecast global handset shipments will rise about 10 percent this year from the estimated 1.1 billion units in 2007, an increase of about 12 percent from 2006.

The United States Federal Reserve lowered its benchmark interest rate on Tuesday in an emergency move for the first time since 2001 after global stock markets tumbled.

Sales at Nokia during the quarter may have been boosted by multimedia and music phones, such as the N81, 5310 and 5610 models introduced in August, as well as the slim 6500 Classic and Slide handsets with high-speed Internet access.

Earlier in the year, Nokia revamped its model offering for emerging markets, where growth is faster than in Europe or the US, with phones costing as little as 30 euros.

Thomas Langer, an analyst at WestLB AG in Dusseldorf, said Nokia probably took a share in both the low- and high-end sections of the market. "We expect very good volumes with market share gains," he said.

Margins may drop sequentially as selling prices fall faster than material costs, Langer said.