Volvo Group -nine months ended September 30, 2008

Volvo Group -nine months ended September 30, 2008

·  Net sales increased by 2% to SEK 69.6 billion (68.4) in the third
quarter
·  In the third quarter, operating income declined by 37% to SEK 3,177 M
(5,010)
·  In the third quarter, basic and diluted earnings per share declined
by 36% to SEK 0.98 (1.54)
·  Operating cash flow in Industrial operations was negative in amount
of SEK 6.1 billion (neg. 0.4)
·  Significant impact from increased costs for raw materials and
components
·  Increased research and development efforts ahead of new emission
regulations and for hybrid projects
·  Slowdown in demand and restructuring costs

Volvo Group                                                   
                  Third quarter               First nine months

                    2008        2007        2008        2007   Change, %

Net sales
Volvo Group,
SEK M             69,604      68,367     226,713     200,849          13

Operating
income Volvo
Group, SEK M       3,177       5,010      16,850      16,457           2

Operating
income
Industrial
operations,
SEK M              2,786       4,555      15,691      15,186           3

Operating
income
Customer
Finance,SEK M         391         454       1,159       1,270         (9)

Operating
margin Volvo
Group, %             4.6         7.3         7.4         8.2  

Income after
financial
items, SEK M       2,898       4,571      16,520      15,948           4

Income for
the period,
SEK M              2,000       3,149      11,364      10,935           4

Diluted
earnings per
share, SEK          0.98        1.54        5.58        5.37  

Return on
shareholders'
equity,
rolling 12
months, %                                   18.9        17.3