Net sales
The Volvo Group’s net sales increased by 15% to SEK 73,321 M during the third quarter of 2011, compared to SEK 63,969 M in the same quarter a year earlier.

Operating income
The Volvo Group’s operating income amounted to SEK 5,774 M in the third quarter compared to SEK 4,913 M in the preceding year. The Industrial Operations’ operating income amounted to SEK 5,523 M (4,866). The Volvo Group’s Customer Finance operations reported an operating income of SEK 251 M (48). For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the third quarter was SEK 589 M compared to an expense of SEK 624 M in the previous year. In the second quarter of 2011 net interest expense amounted to SEK 586 M.

During the third 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 297 M compared to a positive impact of SEK 272 M in the third quarter of 2010.

Income taxes
The tax expense in the third quarter amounted to SEK 1,548 M (1,401), corresponding to a tax rate of 28% (33).

Income for the period and earnings per share
The income for the period amounted to SEK 3,895 M in the third quarter of 2011 compared to SEK 2,851 M in the third quarter of 2010.

Basic and diluted earnings per share in the third quarter amounted to SEK 1.89 (1.38).