Volvo Group - report on the second quarter 2011

| Source: Volvo, AB Volvo, AB 

Volvo Group - report on the second quarter 2011

During the second quarter, the Volvo Group's sales continued to grow as
an effect of a continued recovery in the Group's mature markets and
continued strong demand in emerging markets. Consolidated sales grew 15%
compared with the second quarter of 2010 and amounted to SEK 79 billion.
Operating income amounted to SEK 7.6 billion with an operating margin of
9.7%.

  · In the second quarter, net sales increased by 15% to SEK 79 billion
compared to SEK 69 billion in the preceding year. Adjusted for currency
movements and acquired and divested units, sales increased by 29%.
  · The second quarter operating income amounted to SEK 7.6 billion
compared to SEK 4.8 billion in the preceding year. Operating margin was
9.7% (6.9). Compared to the second quarter of 2010, changes in exchange
rates had a negative impact of approximately SEK 1.7 billion.
  · Operating income was negatively impacted by effects from the
earthquake and tsunami inJapanin a total of approximately SEK 400 M, of
which SEK 100 M in Trucks and SEK 300 M in Construction Equipment.
  · Highest operating income and operating margin so far for the Group
with the truck operation above 10% operating margin.
  · In the second quarter, operating cash flow in the Industrial
Operations was positive in an amount of SEK 5.2 billion (8.5).
  · In the second quarter, basic and diluted earnings per share amounted
to SEK 2.52 (1.55).
  · Return on shareholders' equity of 21.3% on a rolling 12 month basis.

”Going forward, I am convinced that the Group will continue its positive
development. Our intensive efforts to develop and launch a large number
of new products that will reach the market in the next few years
continue. We have a strong network of dealers who work closely with the
customers - a network that we are now investing in to strengthen the
customer interface even further. But above all, the Group has a major
strength in its employees, who work hard to generate value for customers
and shareholders, and with whom it has been a pleasure to work. I would
also like to extend my gratitude to our shareholders, who have given me
their confidence to be President and CEO of the Volvo Group for the last
14 years.” Leif Johansson, President and CEO.

For an English PDF version of the report, please click here: Volvo Group
Q2 2011
PDF (http://www3.volvo.com/investors/finrep/interim/2011/q2/q2_2011_eng.
pdf)

For an English web version of the report please click here: Volvo Group
Q2 2011
HTML (http://www3.volvo.com/investors/finrep/interim/2011/q2/eng/index.h
tml)

For a mobile version of the report please click here: Volvo Group Q2
2011
Mobile (http://www3.volvo.com/investors/finrep/interim/2011/q2/eng/mobil
e/index.html)

Contacts Investor Relations:
Christer Johansson         +46 31 66 13 34
Patrik Stenberg              +46 31 66 13 36
Anders Christensson       +46 31 66 11 91
John Hartwell                  +1 212 418 7432

Aktiebolaget Volvo (publ) 556012-5790
Investor Relations, VHQ
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00
www.volvogroup.com (www.volvogroup.com)

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