Financial performance

Lower earnings

The Volvo Group

Net sales 
Net sales for the Volvo Group decreased by 2% to 303,647 in 2012, compared with 310,367 in the preceding year.

Operating income 
Volvo Group's operating income amounted to 17,622 (26,899). 

Operating income for the Industrial Operations decreased to 16,130 compared with 25,930 in the preceding year. The Customer Finance operations' operating income rose to 1,492 (969).

Net financial items
Net interest expense amounted to 1,966, compared with 2,267 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 of 7. During 2011 the impact was positive 544.

Income taxes
The tax expense for the year amounted to 4,097 (6,814) corresponding to a tax rate of 27% (27).

Income for the period and earnings per share
The income for the period amounted to 11,258 (18,115), corresponding to diluted earnings per share of  SEK 5.44 (8.75). The return on shareholders' equity was 12.9% (23.1).