Financial summary

Net sales and operating income
During the third quarter of 2012, Volvo Group’s net sales decreased by 6% to SEK 69,111 M (73,321) and operating income amounted to SEK 2,927 M (5,774). For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the third quarter was SEK 465 M compared to an expense of SEK 589 M in the previous year. In the second quarter of 2012 net interest expense amounted to SEK 535 M.

During the third quarter, market valuation of derivatives used for hedging interest-rate exposure in the debt portfolio had a negative impact on Other financial income and expenses amounting to SEK 21 M compared to a positive impact of SEK 297 M in the third quarter of 2011.

Income taxes
The tax expense in the third quarter amounted to SEK 947 M (1,548), corresponding to a tax rate of 41% (28), including a negative non-recurring and non-cash impact of SEK 340 M relating to a transfer of intangible assets between Japan and Sweden.

Income for the period and earnings per share
Income for the period amounted to SEK 1,382 M in the third quarter of 2012 compared to SEK 3,895 M in the third quarter of 2011.

Basic and diluted earnings per share in the third quarter amounted to SEK 0.68 (1.89).