During the first quarter of 2012, the truck operation’s net sales amounted to SEK 48,911 M, which was 8% higher than the first quarter of 2011. Adjusted for changes in exchange rates net sales increased by 6%. Increased sales volumes in North America more than compensated for lower volumes in Europe and South America.
The truck operations posted an operating income of SEK 3,521 M in the first quarter of 2012 compared with an operating income of SEK 4,273 M in the first quarter of 2011. The operating margin was 7.2%, compared with 9.5% in the year-earlier period. Operating margin was lower primarily due to the changed market mix, with a higher proportion of sales in North America, and lower in Brazil and Europe. Compared with the first quarter of 2011, operating income was positively impacted by changes in currency exchange rates in an amount of SEK 52 M.
Earnings in the first quarter of 2011 was positively affected by recognition of VAT credits in Brazil of SEK 500 M relating to previous years and negatively by costs related to the earthquake and following tsunami in Japan amounting to an estimated SEK 250 M. Adjusted for these items, the operating margin in the first quarter of 2011 was 8.9%.