GOTEBORG, Sweden, Oct. 23, 2003 (PRIMEZONE) -- Volvo (Nasdaq:VOLVY)(Other OTC:VOLVF) (Other OTC:VOLAFK):
"Despite low demand in key markets, the Volvo Group doubled operating income in the third quarter, compared with the corresponding period in 2002. Our strong product programs, increased efficiency and positive synergy effects are the main reasons for the improved profitability. The new product lines from Volvo Trucks, Volvo CE and Volvo Penta continued to strengthen our positions and contributed to maintaining sales in several important markets", says Leif Johansson, CEO.
Third quarter First nine
months
2003 2002 2003 2002
Net sales, SEK M 40 511 41 524 126 035 131 203
Operating income, SEK M 1 617 817 4 768 2 014
Income after financial 1 298 584 4 098 1 276
items, SEK M
Net income, SEK M 956 421 3 184 755
Sales growth, % (2.4) 0.9 (3.9) (0.6)
Income per share, SEK 2.30 1.00 7.60 1.80
Return on shareholders' equity
during most recent 12 months period, % 5.0 0.3
Operating income Third quarter First nine
months
SEK M 2003 2002 2003 2002
Trucks 944 673 2 494 682
Buses (93) (84) (265) (127)
Construction Equipment 210 120 775 453
Volvo Penta 153 117 524 488
Volvo Aero (2) (72) 3 46
Financial Services 242 126 675 361
Other 163 (63) 562 111
Operating income 1 617 817 4 768 2 014
Q3 R&D Capitalization (SEK M): Total 17, Trucks 12, Buses 5, Construction Equipment -10, Volvo Penta 6, Volvo Aero 4 Profit elimination in conjunction with consolidation of Bilia's commercial operations (SEK M): Total 100, Trucks 85 and Volvo CE 15. Capital gain from divestment of the holding in Bilia of SEK 188 M, recorded in "other." 12 months moving order intake for Trucks through September: total -5%, Europe -11%, North America -5%.
For more information, please see the full report, which is available on www.volvo.com.
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