Financial summary

Net sales and operating income
During the fourth quarter of 2012, Volvo Group’s net sales decreased by 17% to SEK 71,793 M (86,507) and operating income amounted to SEK 1,121 M (6,955). For detailed information on the development, see separate sections below.

Net financial items
Net interest expense in the fourth quarter was SEK 413 M compared with an expense of SEK 522 M in the previous year. In the third quarter of 2012 net interest expense amounted to SEK 465 M.

During the fourth 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 18 M compared with a positive impact of SEK 34 M in the fourth quarter of 2011.

Income taxes
The tax income in the fourth quarter amounted to SEK 181 M compared with a tax expense of SEK 1,592 M in the fourth quarter of 2011. The lowered Swedish corporate tax rate had a non-recurring positive impact of SEK 213 M in the fourth quarter of 2012.

Income for the period and earnings per share
Income for the period amounted to SEK 841 M in the fourth quarter of 2012 compared with SEK 4,798 M in the fourth quarter of 2011.

Basic and diluted earnings per share in the fourth quarter amounted to SEK 0.39 (2.33).