STOCKHOLM - Net sales of the Swedish Volvo group in 2011 reached a record high level of 310.3 billion Swedish kronor ($46 billion), up 17.2 percent compared to 2010, said the company in its annual fiscal report on Friday.

Volvo's income after taxes last year rose to 18.1 billion Swedish kronor, up 61.6 percent from the year before, while the company registered the highest net sales, operating income and margin, said the report.

In the fourth quarter of 2011, the company's net sales increased by 18 percent year on year to 86.5 billion Swedish kronor, higher than what analysts had earlier estimated.

Meanwhile, the income after taxes of the fourth quarter amounted to 4.8 billion Swedish kronor, a 40.5 percent rise from the same period in 2010, according to the report.

Volvo CEO Olof Persson highlighted increased profitability in the truck business as he commented on the fiscal report.

According to him, truck deliveries worldwide rose 21 percent in the fourth quarter of 2011 year-on-year, and the truck brands of Volvo group has gained some 26 percent in the European market.

However, since autumn last year, there was a decline in demand for trucks in Europe. "With the uncertainty in the European economy, it is difficult to forecast demand for trucks in 2012," said Persson.

Customers' needs to replace old trucks with new ones and stricter emission standards which will come into force in 2014 will, however, contribute to a gradual improvement in 2012, Persson said.