Net sales
The Volvo Group’s net sales increased by 22% to SEK 71,577 M during the first quarter of 2011, compared to SEK 58,617 M in the same quarter a year earlier.

Operating income
The Volvo Group’s operating income amounted to SEK 6,522 M in the first quarter compared to SEK 2,799 M in the preceding year. The Industrial Operations’ operating income amounted to SEK 6,343 M (2,785). The Volvo Group’s Customer Finance operations reported an operating income of SEK 179 M (14). For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the first quarter was SEK 569 M compared to an expense of SEK 718 M in the previous year. In the fourth quarter of 2010 net interest expense amounted to SEK 655 M.

During the first 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 29 M compared to a positive impact of SEK 282 M in the first quarter of 2010.

Income taxes
The tax expense in the first quarter amounted to SEK 1,665 M (508), corresponding to a tax rate of 28% (23).

Income for the period and earnings per share
The income for the period amounted to SEK 4,181 M in the first quarter of 2011 compared to SEK 1,720 M in the first quarter of 2010.

Basic and diluted earnings per share in the first quarter amounted to SEK 2.01 (0.83).