Volvo Group – the second quarter 2014

| Source: Volvo, AB
When we summarize the market development for the second quarter and begin with
the Truck operation, we can conclude that our business in North America and
Japan had positive trends in market shares, volumes and capacity utilization.
Following the weak first quarter, the European market recovered gradually during
the second quarter, but the improvement started somewhat later than we had
anticipated. During the quarter, the Brazilian market developed as we
anticipated, with lower order intake and sales. With respect to Construction
Equipment, the second quarter has been characterized by a considerable decline
in the Chinese market.

  · In the second quarter net sales amounted to SEK 72.6 billion (72.8).
Adjusted for currency movements and acquired and divested units sales decreased
by 1%.
  · The second quarter operating income amounted to SEK 4,325 M (3,279)
excluding restructuring charges of SEK 762 M (16). The operating income includes
a positive effect totaling SEK 1,041 M from a capital gain on the sale of
commercial real estate and the release of a provision for Volvo Rents. Currency
exchange rates had a negative impact of SEK 176 M.
  · Operating margin in the second quarter was 6.0% (4.5) excluding
restructuring charges and 4.9% (4.5) including restructuring charges.
  · In the second quarter diluted earnings per share were SEK 1.22 (0.99).
  · In the second quarter operating cash flow in the Industrial Operations
amounted to SEK 4.0 billion (4.1).

“With the closing of the second quarter, we are halfway in the strategy program
that will continue until the end of 2015 and which shall increase the Volvo
Group’s profitability. The program is progressing according to plan and we are
beginning to see positive effects from all the decisions we made in 2012 and
2013. We are slightly ahead of plan with respect to our objective of increasing
the gross margin on our trucks through improved price realization, while we will
strengthen our focus on lowering our operating costs,” says Olof Persson,
President and CEO.

For an English PDF version of the report, please click here: Volvo Group Q2 2014

For a mobile version of the report please click here: Volvo Group Q2 2014
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Investor Relations,
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The Volvo Group is one of the world’s leading manufacturers of trucks, buses,
construction equipment and marine and industrial engines. The Group also
provides complete solutions for financing and service. The Volvo Group, which
employs about 110,000 people, has production facilities in 18 countries and
sells its products in more than 190 markets. In 2013 the Volvo Group’s sales
amounted to about SEK 270 billion. The Volvo Group is a publicly-held company
headquartered in Göteborg, Sweden. Volvo shares are listed on NasdaqOMX
Stockholm. For more information, please visit or if you are using your mobile phone.

AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 07.20 a.m July 18, 2014.