Volvo Group – report on the second quarter 2011

During the second quarter, the Volvo Group’s sales continued to grow as an effect of a continued recovery in the Group’s mature markets and continued strong demand in emerging markets. Consolidated sales grew 15% compared with the second quarter of 2010 and amounted to SEK 79 billion. Operating income amounted to SEK 7.6 billion with an operating margin of 9.7%.

• In the second quarter, net sales increased by 15% to SEK 79 billion compared to SEK 69 billion in the preceding year. Adjusted for currency movements and acquired and divested units, sales increased by 29%.
• The second quarter operating income amounted to SEK 7.6 billion compared to SEK 4.8 billion in the preceding year. Operating margin was 9.7% (6.9). Compared to the second quarter of 2010, changes in exchange rates had a negative impact of approximately SEK 1.7 billion.
• Operating income was negatively impacted by effects from the earthquake and tsunami in Japan in a total of approximately SEK 400 M, of which SEK 100 M in Trucks and SEK 300 M in Construction Equipment.
• Highest operating income and operating margin so far for the Group with the truck operation above 10% operating margin.
• In the second quarter, operating cash flow in the Industrial Operations was positive in an amount of SEK 5.2 billion (8.5).
• In the second quarter, basic and diluted earnings per share amounted to SEK 2.52 (1.55).
• Return on shareholders' equity of 21.3% on a rolling 12 month basis.

”Going forward, I am convinced that the Group will continue its positive development. Our intensive efforts to develop and launch a large number of new products that will reach the market in the next few years continue. We have a strong network of dealers who work closely with the customers – a network that we are now investing in to strengthen the customer interface even further. But above all, the Group has a major strength in its employees, who work hard to generate value for customers and shareholders, and with whom it has been a pleasure to work. I would also like to extend my gratitude to our shareholders, who have given me their confidence to be President and CEO of the Volvo Group for the last 14 years.” Leif Johansson, President and CEO.

Find the full report under interim reports.

July 22, 2011

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