Volvo Group - report on operations 2008

Volvo Group - report on operations 2008

The Volvo Group has been successful in its efforts to reduce its inventory.
During the fourth quarter, the new truck inventory decreased by 13% and the
inventory with new construction vehicles decreased by 19%, which contributed to
reducing capital tied-up in inventory by approximately SEK 6 billion.

•  In the fourth quarter net sales decreased by 9% to SEK 77 billion (85)
For the full year net sales increased by 6% to SEK 304 billion (285)

•  The fourth quarter operating loss amounted to SEK 999 M (Income: 5,775)
For the full year operating income amounted to SEK 15,851 M (22,231)

•  In the fourth quarter basic and diluted earnings per share amounted to a
negative SEK 0.67 (Positive 2.00). Full-year earnings per share amounted to SEK
4.90 (7.37)

•  In the fourth quarter working capital in the Industrial Operations was
reduced by SEK 5.1 billion contributing to a positive operating cash flow of SEK
1.8 billion

•  The Board of Directors proposes an ordinary dividend of SEK 2.00 per share



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