Financial summary

Net sales and operating income
During the second quarter of 2012, Volvo Group’s net sales increased by 6% to SEK 83,904 M (78,962) and operating income amounted to SEK 7,335 M (7,648). For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the second quarter was SEK 535 M compared to an expense of SEK 586 M in the previous year. In the first quarter of 2012 net interest expense amounted to SEK 553 M.

During the second quarter, market valuation of derivatives used for hedging interest-rate exposure in the debt portfolio had a positive impact on Other financial income and expenses amounting to SEK 27 M compared to a positive impact of SEK 242 M in the second quarter of 2011.

Income taxes
The tax expense in the second quarter amounted to SEK 1,820 M (2,009), corresponding to a tax rate of 27% (28).

Income for the period and earnings per share
Income for the period amounted to SEK 4,943 M in the second quarter of 2012 compared to SEK 5,241 M in the second quarter of 2011.

Basic and diluted earnings per share in the second quarter amounted to SEK 2.40 (2.52).