Volvo Group, the heavy truck and equipment maker, said first quarter 2022 sales rose 12% year on year to SEK105.3 billion.

Adjusted operating income was SEK12,681 million (SEK11,821 million a year ago), but adjusted operating margin dipped to 12% from 12.6%.

Reported operating income fell to SEK8,556 million (SEK12,067 million), including a negative hit of SEK 4,125 million from provisioning of assets related to Russia.

Currency movements had a positive impact on operating income of SEK1,267 million.

Earnings per share fell to SEK3.46 from SEK4.35.

“Economic activity continued to be good in Q1 2022 with high transport volumes and good construction activity in most markets,” said president and CEO Martin Lundstedt.

“We increased sales and improved profitability. The high business activity combined with our growing service contract portfolio resulted in continued good service growth, which was up by 19%.”

He added the adjusted operating margin of 12% was achieved “despite a challenging supply chain situation”.