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 First three monthsFirst three months
Net sales, SEK M41,84939,068
Operating income, SEK M1,8881,176
Income after financial items, SEK M5,2481,924
Net income, SEK M4,5011,429

Comments by Chief Executive Officer, Sören Gyll:
- Developments during the first three months of the year represent the continuation of a positive trend that began in autumn of 1996. Sales were higher in all operating sectors except Volvo Trucks. Operating income in the automotive operations improved considerably, compared with the year-earlier period - but from a low level.
- The trend in Volvo Cars is highly gratifying. Operating income of SEK 1,068 M was the highest for any quarter during the 1990s and confirms the stability of the basic improvements that have taken place in this company.

 First three monthsFirst three months
Operating income (SEK M)19971996
Volvo Cars1,068(191)
Volvo Trucks304731
Volvo Buses8769
Volvo Construction Equipment309273
Volvo Penta5017
Volvo Aero11958

Volvo Cars
Volvo Cars' sales were 18% higher than in the first quarter of 1996. The number of cars invoiced rose from 85,200 to 94,500. The operating margin was 4.6%, compared with a negative margin of 1.0% a year earlier.

Volvo Trucks
Volvo delivered 14,500 medium-heavy and heavy trucks during the first quarter of the year, 13% fewer than in the comparable period in 1996. The operating margin was 2.8% (6.3).

Volvo Construction Equipment
Sales increased to SEK 3,688 M (3,045), of which SEK 285 M was attributable to Champion Road Machinery Limited, the newly acquired company. The company's operating margin was 8.4% (9.0).

April 23, 1997

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