After issuing two profit warnings, one mid-November, and one at the start of December, Nokia has reported dire financial results for the fourth quarter of 2008.

Nokia's profits fell 69% as the economic downturn slowed phone sales. Net profit was 576 million euros down from 1.84 billion euros in the same period in 2007.

Sales fell 19.5% and Nokia's market share also took a 3% tumble to 37%. Nokia's shares were down over 7% on the gloomy news that showed a steeper decline that analysts had forecast.

Nokia provided a bleak outlook for the immediate future too - stating it expects global mobile device volumes to drop a further 10% in 2009.

"In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry", CEO Olli-Pekka Kallasvuo said.

"We are taking action to reduce overall costs and to preserve our strong capital structure".