Volvo Group

Net sales and operating income

During the fourth quarter of 2013, Volvo Group's net sales increased by 8% to SEK 76,642 M (70,811). Adjusted for both changes in exchange rates and acquired and divested units net sales increased by 13%. Operating income amounted to SEK 1,577 M excluding charges of SEK 581 M related to the Group-wide Efficiency Program. Including the charges, operating income amounted to SEK 996 M (1,200). In the fourth quarter of 2013, a write-down of Volvo Rents had a negative impact of SEK 1,500 M. For detailed information on the development, see separate sections below.

Financial items

Net interest expense in the fourth quarter was SEK 804 M compared with an expense of SEK 542 M in the previous year. In the third quarter of 2013 net interest expense amounted to SEK 554 M. The higher net interest expense compared to the third quarter of 2013 is primarily the result of an adjustment of SEK 156 M related to capitalized borrowing costs in the previous quarters mainly as a result of applying a lower interest rate.

Other financial income and expenses amounted to a positive SEK 45 M compared with a positive SEK 49 M in the fourth quarter of 2012.

Income taxes

The tax income in the fourth quarter amounted to SEK 311 M positively impacted by revaluations of deferred tax. In the fourth quarter of 2012 tax income amounted to SEK 163 M.

Income for the period and earnings per share

Income for the period amounted to SEK 548 M in the fourth quarter of 2013 compared with SEK 869 M in the fourth quarter of 2012.

Basic and diluted earnings per share in the fourth quarter amounted to SEK 0.24 compared with basic earnings of SEK 0.41 per share and diluted earnings of SEK 0.40 in the fourth quarter of 2012.