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VOLVO INTERIM REPORT, THREE MONTHS ENDED MARCH 31, 1997

- short version -
- short version -

  First three months First three months
  1997 1996
Net sales, SEK M 41,849 39,068
Operating income, SEK M 1,888 1,176
Income after financial items, SEK M 5,248 1,924
Net income, SEK M 4,501 1,429


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 months First three months
Operating income (SEK M) 1997 1996
Volvo Cars 1,068 (191)
Volvo Trucks 304 731
Volvo Buses 87 69
Volvo Construction Equipment 309 273
Volvo Penta 50 17
Volvo Aero 119 58


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

A complete version (13 pages) of the Volvo Interim Report can be ordered by fax: +46 31 53 72 96 or +46 31 54 57 23.

The complete version is also available on Internet - http://www.volvo.se