Press release

Volvo Group – nine months ended September 30, 2007

2007-10-24

Volvo Group

During the third quarter, we experienced continued split development in our markets. Demand remained strong for the Volvo Group’s products and services in most of our markets in Europe, Asia and South America, while demand continued to be weak in North America.

Net sales increased by 13% to SEK 68.4 billion (60.5) in the third quarter
Adjusted for changes in exchange rates and acquired and divested units, net sales decreased by 1%
Operating income rose 54% to SEK 5,010 M (3,260)* in the third quarter
Income for the period decreased by 20% to SEK 3,149 M (3,939)* in the third quarter
Diluted earnings per share amounted to SEK 1.54 (1.94)* in the third quarter
The Industrial Operation’s operating cash flow was negative in an amount of SEK 0.4 billion (neg. 0.4 billion) in the third quarter

Volvo Group	Third quarter		First nine months
	2007	2006*	2007	2006*	Change
Net sales Volvo Group	68,367	60,479	200,849	191,208	5%
Operating income Volvo Group	5,010	3,260	16,457	15,229	8%
Operating income Industrial operations	4,555	2,834	15,186	13,915	9%
Operating income Customer Finance	454	426	1,270	1,314	(3%)
Operating margin Volvo Group	7.3	5.4	8.2	8.0	3%
Income after financial items	4,571	3,144	15,948	15,073	6%
Income for the period	3,149	3,939	10,935	12,617	(13%)
Diluted earnings per share, SEK	1.54	1.94	5.37	6.21	(14%)
Return on shareholders' equity, %			17.3	19.3

The third quarter of 2006 included a reversal of a valuation reserve for deferred taxes and an adjustment of goodwill. As an effect, operating income during the third quarter of 2006 was negatively affected in an amount of SEK 1,712 M while income taxes decreased by SEK 2,048 M. The total effect on income for the period was positive in an amount of SEK 336 M.

For the full report, go to
http://www.volvo.com/group/global/en-gb/investors/financial_reports/ >>

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