Volvo: Report on 2001 Operations - Short Version


GOTEBORG, Sweden, Feb. 8, 2002 (PRIMEZONE) -- Volvo (Nasdaq:VOLVY):

"The negative economic trends were reflected in the Group's operating results, which were unsatisfactory throughout the entire year. The fourth quarter results continued the trend from previous quarters, however the integration of the truck companies had a positive effect on earnings. The continued focus on cash flow was successful, and we were able to deliver positive cash flow for the full year, particulary during the last quarter. Despite the difficult economic conditions, the year was characterized by extensive product renewal. The simultaneous launch during the fourth quarter of Volvo Truck's new FH and FM series, was the largest-ever product introduction", says Leif Johansson, CEO.


                                                        2001     2000
 
 Net sales, SEK M                                    180 615   120 392
 Operating income excluding
  restructuring costs, SEK M*                          3 186     6 668
 Operating income, SEK M*                               (676)    6 668
 Income after financial items, SEK M*                 (1 866)    6 246
 Net income, SEK M                                    (1 467)    4 709
 Sales growth, %                                          50         3
 Income per share excluding
  restructuring costs, during most
   recent 12 months period, SEK                         3.10     11.20
 Return on shareholders' equity, 
  excluding restructuring costs, %                       1.5       5.0
 
 * Volvos operating income during 2001 was favorably affected in the
   amount of SEK 2,038 M attributable to capitalization of development
   costs.
 
 Operating income         Fourth quarter              Year
 (loss)
 SEK M                     2001           2000        2001        2000
 Global Trucks              591            685       1 040       1 414
 Buses                     (231)           162        (524)        440
 Construction Equipment     136            261         891       1 594
 Volvo Penta                128             63         658         484
 Volvo Aero                  89            161         653         621
 Financial Services          80            151         325       1 499
 Other                      (20)           187         143         616
 Operating income*          773          1 670       3 186       6 668
 Restructuring costs     (1 137)             -      (3 862)          -
 Operating income          (364)         1 670        (676)      6 668
 (loss)
 
 *excl restructuring costs
 
 Restructuring cost in fourth quarter:
 -- Global Trucks SEK 507 M
 -- Construction Equipment SEK 280 M
 -- Buses SEK 350 M

The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications and aircraft engine components. The Group also provides complete solution for financing and service. The Group has about 78,000 employees, production in 25 countries and operations are carried out in more than 185 markets. Annual sales of the Volvo Group amount to nearly SEK 200 billion.

For more information, please see the full report, which is available on www.volvo.com.

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