Volvo Group

Net sales and operating income
During the third quarter of 2013, Volvo Group’s net sales decreased by 5% to SEK 64,880 M (68,256). Adjusted for both changes in exchange rates and acquired and divested units (primarily Volvo Aero) net sales increased by 3%. Operating income amounted to SEK 2,502 M excluding charges of SEK 104 M related to the Group-wide Efficiency Program. Including the charges, operating income amounted to SEK 2,398 M (2,920). For detailed information on the development, see separate sections below.

Financial items
Net interest expense in the third quarter was SEK 554 M compared with an expense of SEK 596 M in the previous year. In the second quarter of 2013 net interest expense amounted to SEK 611 M.

Other financial income and expenses amounted to a negative SEK 140 M compared with a positive SEK 45 M in the third quarter of 2012. The change is primarily an effect of the market valuation of derivatives used to hedge cash flow and interest rate exposure being negative in an amount of SEK 5 M compared to a positive SEK 157 M in the third quarter of 2012.

Income taxes
The tax expense in the third quarter amounted to SEK 288 M (958), including a tax credit in Brazil amounting to SEK 274 M.

Income for the period and earnings per share
Income for the period amounted to SEK 1,415 M in the third quarter of 2013 compared with SEK 1,412 M in the third quarter of 2012.

Basic and diluted earnings per share in the third quarter amounted to SEK 0.68 compared with SEK 0.69 in the third quarter of 2012.