Financial summary

Net sales
The Volvo Group’s net sales increased by 18% to SEK 86,507 M during the fourth quarter of 2011, compared to SEK 73,398 M in the same quarter a year earlier.

Operating income
The Volvo Group’s operating income amounted to SEK 6,955 M in the fourth quarter compared to SEK 5,518 M in the preceding year. For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the fourth quarter was SEK 522 M compared to an expense of SEK 655 M in the previous year. In the third quarter of 2011 net interest expense amounted to SEK 589 M.

During the fourth 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 34 M compared to a negative impact of SEK 117 M in the fourth quarter of 2010.

During the fourth quarter of 2010 a devaluation in Venezuela had a negative impact on Other financial income and expenses amounting to SEK 157 M.

Income taxes
The tax expense in the fourth quarter amounted to SEK 1,592 M (1,078), corresponding to a tax rate of 25% (24).

Income for the period and earnings per share
The income for the period amounted to SEK 4,798 M in the fourth quarter of 2011 compared to SEK 3,415 M in the fourth quarter of 2010.

Basic and diluted earnings per share in the fourth quarter amounted to SEK 2.33 (1.59).