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Volvo Group – nine months ended September 30, 2010

In the third quarter of 2010, the Volvo Group’s sales increased by 32% to SEK 64 billion. Sales rose in all of the Group’s markets. Meanwhile, profitability continued to improve as a consequence of higher sales volumes, strict control over costs, and increased capacity utilization and a favorable productivity trend in the industrial systems. Operating income rose to SEK 4.9 billion and the Group reached an operating margin of 7.7%. The operating income as well as the operating margin is the highest to date for a third quarter.
• In the third quarter, net sales increased by 32% to SEK 64.0 billion (48.5). Adjusted for currency movements, sales increased by 33%
• The third quarter operating income amounted to SEK 4,913 M (Loss SEK 3,286 M). Operating margin in the third quarter was 7.7% (Negative 6.8%)
• In the third quarter, basic and diluted earnings per share amounted to SEK 1.38 (Negative SEK 1.44)
• In the third quarter, operating cash flow in the Industrial Operations was negative in an amount of SEK 1.9 billion (Negative SEK 1.4 billion)
• Half of the Group’s net sales were generated in markets outside Western Europe and North America

“At present, we are raising the production rates in most of our manufacturing facilities, and we are working intensely to ensure that the production increase is carried out as efficiently as possible with a minimum of tied-up capital. We are also focusing on securing that all of the activities that have been implemented to further boost productivity and efficiency across the Group shall continue to have a positive impact on our profitability.” Leif Johansson, President and CEO.

Find the full report under Interim reports.

October 22, 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