· 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.
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| Third quarter | First nine months | ||
|
| 2005 | 2004 | 2005 | 2004 |
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| 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