Financial summary

Net sales
The Volvo Group’s net sales increased by 15% to SEK 78,962 M during the second quarter of 2011, compared to SEK 68,765 M in the same quarter a year earlier.

Operating income
The Volvo Group’s operating income amounted to SEK 7,648 M in the second quarter compared to SEK 4,770 M in the preceding year. The Industrial Operations’ operating income amounted to SEK 7,398 M (4,763). The Volvo Group’s Customer Finance operations reported an operating income of SEK 250 M (7). For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the second quarter was SEK 586 M compared to an expense of SEK 703 M in the previous year. In the first quarter of 2011 net interest expense amounted to SEK 569 M.

During the second quarter, market valuation of derivatives used for hedging interest-rate exposure in the debt portfolio had a positive effect on Other financial income and expenses amounting to SEK 242 M compared to a positive impact of SEK 433 M in the second quarter of 2010.

Income taxes
The tax expense in the second quarter amounted to SEK 2,009 M (1,315), corresponding to a tax rate of 28% (29).

Income for the period and earnings per share
The income for the period amounted to SEK 5,241 M in the second quarter of 2011 compared to SEK 3,226 M in the second quarter of 2010.

Basic and diluted earnings per share in the second quarter amounted to SEK 2.52 (1.55).