Volvo Group – three months ended March 31, 2010

During the first quarter of 2010, the Volvo Group’s sales amounted to SEK 58.6 billion, which adjusted for currency was a 12% increase compared with the year-earlier period. Operating income improved considerably to SEK 2.8 billion, compared with a loss of SEK 4.5 billion in the same quarter in the preceding year. All of the Group’s business segments were profitable. The operating margin rose to 4.8% as a consequence of the actions taken to reduce the Group’s costs and as an effect of improved capacity utilization and productivity in the industrial system.

• In the first quarter, net sales increased by 4% to SEK 58.6 billion (56.1). Adjusted for currency movements, sales increased by 12%

• The first quarter operating income amounted to SEK 2,799 M (Loss SEK 4,528 M) driven by a reduced overall cost structure combined with improved productivity and cost absorption in the industrial system

• In the first quarter, basic and diluted earnings per share amounted to SEK 0.83 (Negative SEK 2.09)

• In the first quarter, operating cash flow in the Industrial Operations was negative in an amount of SEK 2.7 billion (Negative SEK 15.7 billion). The negative cash flow was an effect of a normal seasonal build-up of working capital

• Significant earnings recovery in Construction Equipment

”With a gradually improved global economy, demand is once again increasing for the Group’s products. At the same time, the measures we have implemented to cut costs have generated good results throughout the Group. Looking ahead, we will focus on utilizing the rising sales volume to increase productivity in all of the Group’s operations while maintaining a strict focus on cost. Sales and administration costs will be kept down and we are resolute about further enhancing the efficiency in product development.” Leif Johansson, President and CEO.

Find the full report under Interim reports.

April 23, 2010

Contacts Investor Relations:
Christer Johansson, +46 31 66 13 34
Patrik Stenberg, +46 31 66 13 36
Anders Christensson, +46 31 66 11 91
John Hartwell, +1 212 418 7432