Nokia, the world's biggest manufacturer of mobile phones, reported Thursday that its profit jumped by 60 percent in the fourth quarter, as cost-cutting, layoffs and other strict measures supported offset a 5 percent decline in sales.

In addition, the company claimed that it managed to boost its share of the lucrative smartphone market, despite tough competition from the iPhone and Blackberry.

Shares in the company, which is based in Espoo, Finland, soared by more than 10 percent in trading in Helsinki after Nokia revealed it speculated global industry sales to leap 10 percent this year, reflecting a budding recovery in one of the world's key technology industries.

"It was a great performance and Nokia's best set of handset results since the first half of 2008", said Neil Mawston, an analyst at Strategy Analytics in London. "Shipments, revenues, average selling prices and margins all exceeded expectations for the quarter".

Nokia quoted it speculates its net sales at its devices and services unit in the first quarter 2010 to touch EUR6.5 billion-EUR7 billion, compared with EUR8.2 billion in the fourth quarter and EUR6.2 billion in the first quarter of 2009.

Nokia, in November, unveiled its plans to restructure the business and cut its spending by €500 million annually by mid-2011, which is expected to include cuts of up to 9% of the workforce.