Volvo: Report on Three First Months 2002 -- Short Version

GOTEBORG, Sweden, April 22, 2002 (PRIMEZONE) -- Volvo (Nasdaq:VOLVY):

"The first three months were also characterized by intensive efforts to phase in the new products that were launched in the second half of 2001. This particularly applied to Volvo Trucks, which is currently implementing the most extensive model replacement program ever. As previously announced, this replacement resulted in extensive ramp up activities in both production and for our suppliers. The most intensive part of the replacement process is over and production will start to catch up with orders in the second quarter. The strong demand for the trucks is of course a very positive sign, even if it has not improved earnings yet. Volvo CE is also going through an important product replacement phase, as the new generation of wheel loaders and excavators are set in production. The extended range of compact equipment has been very well received. Volvo CE's order intake increased significantly during the first quarter. Volvo Aero's sales and operating income dropped, mainly depending on the effects from September 11, which started to affect aerospace services during the first quarter. September 11, has also affected Volvo Buses with lower demand for coaches," said Leif Johansson, CEO.

                                   2002          2001

 Net sales, SEK M                40 385        43 750
 Operating income (loss)
  excluding restructuring
   costs, SEK M                   (362)           502
 Operating income (loss),
  SEK M                           (362)         (817)
 Income (loss) after
  financial items, SEK M          (618)       (1 251)
 Net income (loss), SEK M         (746)         (801)
 Sales growth, %                    (8)            55
 Income (loss) per share
  during most recent
   12 months period, SEK         (3.40)          6.40

 Return on shareholders'
  equity, %                       (1.6)           2.9

 Operating income   First three months      12-month     Jan - Dec
 SEK M              2002          2001       rolling          2001

 Trucks             (474)          150           416         1 040
 Buses               (94)          (83)         (535)         (524)
  Equipment         (131)           81           679           891
 Volvo Penta         146           167           637           658
 Volvo Aero           78           160           571           653
 Financial Services  115           113           327           325
 Other                (2)          (86)          227           143
 Operating income
  (loss) (1) (2)    (362)           502        2 322         3 186
  costs                0         (1 319)      (2 543)       (3 862)
 Operating income
  (loss)            (362)          (817)        (221)         (676)
 (1) excluding restructuring costs
 (2) including SEK 181 M negative effect from Volvo Pension foundation

For more information, please see the full report, which is available on

The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications and aircraft engine components. The Group also provides complete solution for financing and service. The Group has about 71,000 employees, production in 25 countries and operations are carried out in more than 185 markets. Annual sales of the Volvo Group amount to nearly SEK 180 billion.

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