(Telecompaper) Nokia said its fourth-quarter results were better than expected, thanks to strong sales of its Lumia smartphones and lower costs. The company said its main Devices & Services division is expected to report an adjusted operating margin of breakeven to 2 percent, better than its earlier forecast of minus 6 percent, plus or minus four percentage points. Revenues at the division are estimated at EUR 3.9 billion for the fourth quarter, with 86.3 million phones sold. That includes 79.6 million traditional mobile phones, of which 9.3 million from the Asha touch series, and 6.6 million smartphones, of which 4.4 million of the Lumia Windows devices. Nokia Siemens Networks also performed better than expected, with sales of EUR 4.0 billion and an adjusted operating margin of 13-15 percent. The company had earlier forecast a margin of 8 percent, plus or minus four percentage points. Nokia said it expects results for the first quarter 2013 to be weaker compared to Q4, due to seasonal effects and ongoing tough competition. The margin at Devices & Services is forecast at minus 2 percent, plus or minus 4 points, and the margin at NSN should be a positive 3 percent, plus or minus 4 points. Nokia will report full quarterly results on 24 January.