In the first quarter of 2011, net sales increased by 41% to SEK 15,759 M (11,148). Sales were positively impacted by strong momentum in most markets. Adjusted for currency movements, net sales increased by 53%.
Operating income was up almost 70% to SEK 1,708 M (1,006) and the operating margin was 10.8% (9.0), which is the highest ever for a first quarter. The improvement in operating income was mainly driven by higher sales, internal cost reduction activities with lower break even level, strong business in China and increased productivity. During the first quarter of 2011, Volvo CE continued to gain market shares in China and was the largest producer of excavators and wheel loaders in the country.
The disaster in Japan had no major negative impact on the first quarter results, but the manufacture of primarily excavators in Korea will be affected by a shortage of key hydraulic components for some of the models from the second quarter.
The value of the order book at March 31 was 40% higher than a year earlier.