Updated from 11:02 a.m. EDT

Shares of Finnish mobile phone operator

Nokia

(NOK) - Get Report

lost nearly a fourth of their value in morning trading Thursday after the company warned that its third-quarter earnings will fall short of the present quarter.

Nokia shares closed Thursday down 14 5/16, or 26%, at 41 7/16.

Nokia buried the news at the end of a statement announcing second-quarter earnings, which showed a 62% rise in pre-tax profits to 1.4 billion euros.

Jorma Ollila, Nokia's chairman and chief executive officer, said, "In the coming months Nokia Mobile Phones plans to commence shipments of several advanced models. We anticipate Nokia's earnings per share in the third quarter to be at least equal to the level achieved in the third quarter of 1999. However, due to the timing of the new product introductions as well as seasonality, the are projected to be lower than in the second quarter of this year."