Press releases 2010

Professor Harold Mooney of Stanford University in California has been named recipient of the 2010 Volvo Environment Prize. He is one of the world’s leading researchers into biodiversity and ecosystem services, an area currently attracting global attention.

Volvo Treasury AB (publ) has today published its semi-annual report for 2010.

Total deliveries from the Volvo Group’s truck operations in July amounted to 14,377 vehicles. This was an increase of 62% compared with the year-earlier period.

The Chinese authorities have approved an agreement according to which Sinotruk (BVI) Limited, a wholly owned subsidiary of China National Heavy Duty Truck Group Corporation (CNHTC), and CNHTC will purchase all of the Volvo Group’s equity interest in Jinan Huawo Truck Corporation (Joint Venture). The Volvo Group’s holding amounted to 50% of the equity interest.

Volvo Buses has received an order for 1,000 Volvo B7RLE bus chassis to Panama City. Low fuel consumption and a high level of availability were decisive factors in the customer’s decision to purchase Volvo vehicles.

The Volvo Group's customer finance company, Volvo Financial Services (VFS), has signed an agreement with ORIX of Indonesia Finance (ORIF) to provide a comprehensive finance program for customers of the Volvo Group in Indonesia.

During the second quarter, the Volvo Group’s sales continued to increase as a result of the gradual recovery in demand in most of the Group’s markets. At the same time, profitability continued to improve thanks to the sales increase, strict control over our costs and a good productivity development in our industrial system. Adjusted for exchange-rate fluctuations, the Group’s sales rose 31% compared with the second quarter of 2009. Operating income reached SEK 4.8 billion in the second quarter with an operating margin of 6.9%. Operating cash flow in the Industrial Operations was strong and amounted to SEK 8.5 billion.

Volvo Aero has signed an agreement to sell its US subsidiary Volvo Aero Services. The sale is expected to have a negative impact of approximately SEK 200 M on the Volvo Group’s operating income during the second quarter. At the same time, the transaction is expected to have a positive effect of about SEK 400 M on the Group’s net financial debt in the third quarter.

AB Volvo hereby invites the media to a press conference on Thursday, July 22 in conjunction with the release of the Volvo Group’s interim report for the second quarter of 2010.

The Swedish state-owned venture-capital company, Fouriertransform, is investing SEK 20 M in El-Forest AB, in which Volvo Technology Transfer (VTT) is among the principal owners. The investment is being conducted on the basis of a private placement in El-Forest AB and enables the company to commence series production on the world’s first forestry machine powered by energy-efficient series hybrid technology.