Volvo - Six Months Ended June 30, 2003 - Short Version


GOTEBORG, Sweden, July 23, 2003 (PRIMEZONE) -- Volvo (Nasdaq:VOLVY)(Other OTC:VOLVF) (Other OTC:VOLAFK):

"The Volvo Group continued to improve its profitability for the fourth consecutive quarter compared with the corresponding periods in the preceding year. Earnings improved despite a drop in sales of ten percent related to the weakening US dollar. It is also encouraging to note that the Group generated a positive operating cash flow in the first half of the year. Synergies from the Truck operations contributed a great deal to the improvement, as did the new and highly successful product program of Volvo Trucks and the clearly improved profitability of Renault Trucks," says Leif Johansson, CEO.


                              Second quarter First six months
                                2003    2002     2003    2002

 Net sales, SEK M             44 593  49 294   85 524  89 679
 Operating income, SEK M       2 242   1 559    3 151   1 197
 Income after financial        2 043   1 310    2 800     692
 items, SEK M
 Net income, SEK M             1 722   1 080    2 228     334
 Sales growth, %               (9.5)     4.7    (4.6)   (1.3)
 Income per share, SEK          4.10    2.60     5.30    0.80
 Return on shareholders'
 equity during most
 recent 12 months period, %                       4.2   (2.0)

 Operating income              Second quarter First six months
 SEK M                           2003    2002     2003    2002
 Trucks                         1 023     483    1 550       9
 Buses                           (89)      51    (172)    (43)
 Construction Equipment           425     464      565     333
 Volvo Penta                      212     225      371     371
 Volvo Aero                        11      40        5     118
 Financial Services               221     120      433     235
 Other                            439     176      399     174
 Operating income               2 242   1 559    3 151   1 197

Q2 R&D Capitalization: Total 189, Trucks 115, Buses 5, Construction Equipment -7, Volvo Penta 69, Volvo Aero 5, FinancialServices 2

12 months moving order intake for Trucks through June: total -11%, Europe -13%, North America -19%

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

AB Volvo, July 23, 2003

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