The Volvo Group

Net sales 
Net sales for the Volvo Group increased by 21% to SEK 264,749 M in 2010, compared with SEK 218,361 M in 2009.

Operating income 
Volvo Group operating income amounted to SEK 18,000 M (loss: 17,013). 

Operating income for the Industrial Operations increased to SEK 17,834 M compared with an operating loss of SEK 16,333 M in the preceding year. The Customer Finance operations' operating income rose to SEK 167 M (loss: 680).

Net financial items
Net interest expense was SEK 2,700 M, compared with SEK 3,169 M in 2009. The improvement  is mainly attributable to lower  expense for post-employment benefits.

During the year, market valuation of derivatives, mainly used for the customer financing portfolio, had a positive effect on Other financial income and expenses in an amount of SEK 871 M (neg: 90).

The currency in Venezuela was devalued twice during 2010, which negatively impacted Other financial income and expenses by SEK 116 M during the first quarter and an additional SEK 158 M during the fourth quarter.

Income taxes
The tax expense for the year amounted to SEK 4,302 M corresponding to a tax rate of 28%. In 2009 the tax income amounted to SEK 5,889 M and a tax rate of 29%.

Income for the period and earnings per share
The income for the period amounted to SEK 11,212 M (loss: 14,685), corresponding to basic and diluted earnings per share of SEK 5.36 (neg: 7.26). The return on shareholders' equity was 16.0% (neg: 19.7).