Volvo Group report on the first quarter 2011

Knowledge Base: Volvo Buyer's Guide

Sweden--April 27, 2011:

“We note that our mature markets are recovering, with continuing sharp sales increase and favorable profitability in our operations in the emerging markets of Brazil, China and India.”

During the first quarter of 2011, the Volvo Group had strong sales growth with significantly improved profitability. Sales amounted to SEK 72 billion, an increase of 22% compared with the year-earlier period. Operating income rose to SEK 6.5 billion, with an operating margin of 9.1%.

• In the first quarter, net sales increased by 22% to SEK 71.6 billion (58.6). Adjusted for currency movements, sales increased by 33%
• Highest ever operating income and operating margin for a first quarter
• The first quarter operating income amounted to SEK 6.5 billion (2.8). Operating margin in the first quarter was 9.1% (4.8). Compared to the first quarter of 2010, changes in exchange rates had a negative impact of approximately SEK 1.3 billion
• Operating income was positively affected by recognition of VAT credits corresponding to SEK 590 M and negatively affected by disturbances in the Japanese business estimated at SEK 250 M
• In the first quarter, basic and diluted earnings per share amounted to SEK 2.01 (0.83)
• In the first quarter, operating cash flow in the Industrial Operations was negative in an amount of SEK 4.0 billion (negative SEK 2.7 billion) reflecting normal seasonality

"We note that our mature markets are recovering, with continuing sharp sales increase and favorable profitability in our operations in the emerging markets of Brazil, China and India." Leif Johansson, President and CEO.