The Volvo Group

Net sales 
Net sales for the Volvo Group increased by 17% to SEK 310,367 M in 2011, compared with SEK 264,749 M in the preceding year.

Operating income 
Volvo Group operating income improved to SEK 26,899 M (18,000). 

Operating income for the Industrial Operations increased to SEK 25,957 M compared with SEK 17,834 M in the preceding year. The Customer Finance operations' operating income rose to SEK 942 M (167).

Net financial items
Net interest expense was SEK 2,267 M, compared with SEK 2,700 M in the preceding year.

During the year, market valuation of derivatives, mainly used for eliminating interest exposure in the customer financing portfolio, had a positive effect on Other financial income and expenses in an amount of SEK 544 M. During 2010 the impact was positive and amounted to SEK 871 M.

The currency in Venezuela was devalued twice during 2010, which negatively impacted Other financial income and expenses by SEK 274 M in 2010.

Income taxes
The tax expense for the year amounted to SEK 6,814 M (4,302) corresponding to a tax rate of 27% (28).

Income for the period and earnings per share
The income for the period amounted to SEK 18,115 M (11,212), corresponding to diluted earnings per share of SEK 8.75 (5.36). The return on shareholders' equity was 23.1% (16.0).