Volvo Group - three months ended March 31, 2007

Volvo Group - three months ended March 31, 2007

•  Net sales the first quarter decreased by 3% to SEK 61.0 billion (62,7) 1)
Adjusted for changes in exchange rates, and acquired and divested units, net
sales rose by 2%
•  Operating income decreased by 2% to SEK 5,328 M (5,430)
•  Income for the period decreased by 6% to SEK 3,756 M (3,998)
•  Diluted earnings per share amounted to SEK 1.85 (1.96) 2)

•  Purchase of Nissan Diesel completed
In March 2007, Volvo's acquisition of the Japanese truck manufacturer Nissan
Diesel was comleted. Activity is currently high to integrate Nissan Diesel into
the Group and, consequently, achieve coordination gains. Nissan Diesel is
consolidated in the Volvo Group's balance sheet as of the close of the first
quarter of 2007. Sales and earnings will be reported from the beginning of the
second quarter.

•  Volvo acquires Ingersoll Rand's road development equipment division
The Volvo Group's acquisition of the American Ingersoll Rand's road development
division was completed in the second quarter. Intensive efforts are under way to
create a new division for road construction equipment within Volvo Construction
Equipment.



Volvo Group                           First three months
                                   2007          2006       Change

Net sales, SEK M 1)              61,036        62,735         (3%)
  Operating income
Industrial operations, SEK M      4,933         5,026         (2%)
  Operating income
Customer Finance, SEK M             395           404         (2%)
Operating income Volvo
Group, SEK M                      5,328         5,430         (2%)
Operating
margin Volvo Group, %               8.7           8.7  
Income after financial
items, SEK M                      5,407         5,472         (1%)
Income for
the period, SEK M                 3,756         3,998         (6%)
Diluted earnings per
share, SEK 2)                      1.85          1.96          
ROE, %                             18.6          18.2  


1) Including Customer Finance. For further information on the Volvo Group's new
financial reporting structure, see Accounting principles on page 14.
2) Earnings per share are calculated after the 6:1 share split with automatic
redemption, in which the sixth share is redeemed by AB Volvo for SEK 25 per
share, which means that the number of shares are now fivefold.

Contacts 

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