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Volvo Group ; Nine Months Ended September 30, 2008


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STOCKHOLM, Sweden October 24, 2008: Volvo (STO:VOLVA)(STO:VOLVB)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