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Volvo – six months ended June 30, 2006

The second quarter was the best ever for the Volvo Group, with continuing sales increase in all business areas.
• Net sales increased by 7% to SEK 65,472 M (61,119) in the second quarter

• Income for the period increased by 19% to SEK 4,680 M (3,931) the second quarter

• Basic earnings per share rose to SEK 11.53 (9.68) during the second quarter

• Operating income rose 22% to SEK 6,539 M (5,351) during the second quarter

• Operating margin rose to 10.0% (8.8) the second quarter, the highest ever

• Operating cash flow, excluding Financial Services, doubled in the second quarter and amounted to SEK 6.0 billion (3.0)

• Renewed and widened range of distribution trucks in Europe

 

 

             Second quarter

            First six months

 

2006

2005

2006

2005

 

 

 

 

 

Net sales, SEK M

65,472

61,119

125,644

113,372

Operating income, SEK M

6,539

5,351

11,969

9,887

Income after financial items, SEK M

6,457

5,254

11,929

9,857

Income for the period, SEK M

4,680

3,931

8,678

7,179

Basic earnings per share, SEK

11.53

9.68

21.37

17.60

Return on shareholders' equity during most recent 12 months period, %

18.6

16.8

 

As of January 1, 2005 AB Volvo complies with International Financial Reporting Standards (IFRS), previously known as IAS, as adopted by the European Union. In the comments on earnings on pages 1-20 however, Volvo Financial Services is reported in accordance with the equity method. Financial information with Volvo Financial Services reported in accordance with the purchase method as it is stipulated by IFRS begins on page 21.

For the full report, see attachment.

Also visit financial information

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Investor Relations:
Christer Johansson, +46 31 66 13 34
Joakim Wahlström, +46 31 66 11 91
John Hartwell, +1 212 418 7432
Noah Weiss, +1 212 418 7431