Financial summary

Net sales and operating income
The Volvo Group’s net sales increased by 10% to SEK 78,838 M during the first quarter of 2012 and operating income amounted to SEK 6,239 M. For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the first quarter was SEK 553 M compared to an expense of SEK 569 M in the previous year. In the fourth quarter of 2011 net interest expense amounted to SEK 522 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 17 M compared to a negative impact of SEK 29 M in the first quarter of 2011.

Income taxes
The tax expense in the first quarter amounted to SEK 1,510 M (1,665), corresponding to a tax rate of 27% (28).

Income for the period and earnings per share
The income for the period amounted to SEK 4,092 M in the first quarter of 2012 compared to SEK 4,181 M in the first quarter of 2011.

Basic and diluted earnings per share in the first quarter amounted to SEK 1.98 (2.01).