In the first quarter, net sales increased by 10% to SEK 5,224 M (4,742). Adjusted for currency fluctuations, net sales increased by 7%. The increase was driven by significantly higher deliveries in Brazil in connection to the new, stricter emission regulation.
Operating income declined to SEK 62 M (303). Operating income was negatively affected by pricing pressure in Europe as well as low capacity utilization in the manufacturing system in Europe and Brazil. Compared with the first quarter of 2011, currency fluctuations had a positive impact on operating income in an amount of SEK 101 M. The operating margin declined to 1.2% (6.4).
The first quarter of 2011 included a positive impact of SEK 80 M from the recognition of VAT credits in Brazil relating to previous years.