Pressrelease

Volvo – Definitive report on 2003 operations

2004-03-15

This definitive report on Operations 2003 has been updated to reflect changes in Volvo’s holding in Scania and the effects from a revaluation of the holding in Henlys Group Plc.

	2003	2002	2003	2002

Net sales, SEK M	48 733	45 877	174 768	177 080
Operating income*, SEK M	1 766	823	6 534	2 837
Write-down of shares**, SEK M	(4 030)	-	(4 030)	-
Operating income (loss), SEK M	(2 264)	823	2 504	2 837
Income (loss) after financial items, SEK M	(2 441)	737	1 657	2 013
Net income (loss), SEK M	(2 886)	638	298	1 393
Sales growth, %	6.2	(5.7)	(1.3)	(2.0)
Income per share*, SEK	2.70	1.50	10.30	3.30
Income (loss) per share, SEK	(6.90)	1.50	0.70	3.30
Return on shareholders' equity during most recent 12 months period, %			0.4	1.7
*) Excluding write-down of shares in Scania AB and Henlys Group Plc during the fourth quarter 2003.
**) Write-down of shares in Scania AB amounting to SEK 3,601 M and Henlys Group Plc amounting to SEK 429 M.

Net sales for the fourth quarter 2003 amounted to SEK 48,733 M (45,877).
Net loss amounted to SEK 2,886 M (income: 638) in the fourth quarter.
Income per share for the fourth quarter was a negative SEK 6.90 (income: 1.50). Income per share for the year amounted to SEK 0.70 (3.30).
Operating income for the fourth quarter included a write-down of shares in Scania AB and Henlys Group Plc amounting to SEK 3,601 M and SEK 429 M respectively.
Cash flow after net investments excluding Financial Services improved to SEK 7.8 billion (4.9) in the fourth quarter.
The Board of Directors proposes that a cash dividend of SEK 8.00 per share be paid for 2003. In addition it proposes that 99% of the shares in the wholly owned company, Ainax, be distributed to the shareholders of AB Volvo. The value of the Ainax shares corresponds to a value of SEK 14:40 per Volvo share based on the Scania A closing price of SEK 223:50 at March 12, 2004.

For further information contact:

Investor Relations:

Fredrik Brunell +46 31 66 11 91
Christer Johansson +46 31 66 13 34
Patrik Stenberg +46 31 66 13 36

John Hartwell +1 212 418 7432

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