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Volvo – nine months ended September 30, 2005

CEO comments: "Best third quarter ever. With sales of SEK 53 billion and operating income of SEK 4 billion. All business areas contributed with profitability improvements, which is highly pleasing..."
· Net sales in the third quarter 2005 increased by 14% to SEK 52,532 M (46,024)

· In the third quarter, income for the period increased by 151% to SEK 2,935 M (1,167*)

· Income per share for the third quarter increased by 163% to SEK 7.24 (2.75*)

· The Group’s operating margin rose to 7.6% (6.3) in the third quarter, with all business areas improving profitability

· Third quarter operating cash flow was a negative SEK 0.7 billion (neg: 2.9), after a transfer of SEK 1.5 billion to pension funds

· Important product launches within truck operations

* Write-downs of SEK 1,310 M relating to Henlys Group were included in the income for the third quarter 2004.

 

Third quarter

First nine months

 

2005

2004

2005

2004

 

 

 

 

 

Net sales, SEK M

52,532

46,024

165,904

145,196

Operating income, SEK M 1)

4,004

2,900

13,890

9,163

Revaluation of shares

                    -

                    -

                    -

820

Operating income, SEK M

4,004

2,900

13,890

9,983

Income after financial items, SEK M

4,015

1,516

13,871

8,432

Income for the period, SEK M

2,935

1,167

10,112

6,402

Income per share, SEK 1)

7.24

2.75

24.84

13.20

Income per share, SEK

7.24

2.75

24.84

15.15

Return on shareholders' equity during most recent 12 month period, %

19.0

4.9

1) Excluding revaluation of shares in Scania AB and Henlys Group.

As of January 1, 2005 AB Volvo complies with International Financial Reporting Standards (IFRS), previously known as IAS, in accordance with the European Union regulation. Figures for the corresponding periods in the preceding year have been restated according to IFRS.
   In the comments on earnings on pages 1-20, Volvo Financial Services is reported in accordance with the equity method. Reporting in accordance with IAS 1 is provided beginning on page 22

For further information, contact:

Investor Relations:  
Fredrik Brunell       +46 31 66 11 91    
Christer Johansson       +46 31 66 13 34
John Hartwell        +1 212 418 7432