Net sales
The Volvo Group’s net sales increased by 23% to SEK 73,398 M during the fourth quarter of 2010, compared to SEK 59,798 M in the same quarter a year earlier.

Operating income
The Volvo Group’s operating income amounted to SEK 5,518 M in the fourth quarter compared to an operating loss of SEK 2,316 M in the preceding year. The Industrial Operations’ operating income amounted to SEK 5,420 M (Loss SEK 2,331 M). The Volvo Group’s Customer Finance operations reported an operating income of SEK 98 M (15). For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the fourth quarter was SEK 655 M compared to an expense of SEK 624 M in the third quarter of 2010.

During the fourth quarter the devaluation in Venezuela had a negative impact on Other financial income and expenses amounting to SEK 157 M. During the quarter, market valuation of derivatives used for hedging interest-rate exposure in the debt portfolio had a negative effect on Other financial income and expenses amounting to SEK 117 M compared to a positive impact of SEK 238 M in the fourth quarter of 2009.

Income taxes
The tax expense in the fourth quarter amounted to SEK 1,078 M (Income: SEK 897 M), corresponding to a tax rate of 24%.

Income for the period and earnings per share
The income for the period amounted to SEK 3,415 M in the fourth quarter of 2010 compared to a loss for the period of SEK 1,985 M in the fourth quarter of 2009.

Basic and diluted earnings per share in the fourth quarter amounted to SEK 1.59 (Negative SEK 0.99).