Volvo - Nine Months Ended Sep 30, 2001 - Short Version

    STOCKHOLM, Sweden--Oct. 24, 2001--"The Volvo Group is characterized by measures to adapt its operations to economic conditions, and long-term efforts to create an effective industrial structure. The difficult market conditions resulted in unsatisfactory profitability, but our efforts to improve cash flow showed results and the Group reported positive cash flow during the third quarter. At the same time as we focus on cost efficiencies, we are prioritizing renewal of the product portfolio, and thereby strengthening our market positions," says Leif Johansson, CEO.

First nine months                                 2001     2000

Net sales, SEK M                                131,982   87,155
Operating income excluding                        2,413    4,998
restructuring costs, SEK M(a)
Operating income, SEK M(a)                         (312)   4,998
Income after financial                           (1,319)   4,859
items, SEK M
Net income, SEK M                                  (980)   3,522
Sales growth, %                                      51        4
Income per share excluding
 restructuring costs, during
 most recent 12 months period, SEK                 5.30    11.90
Return on shareholders'
 equity, excluding restructuring costs, %           2.4      5.4

(a) Volvos operating income during the first nine months 2001 was
favorably affected in the amount of SEK 1,458 M attributable to
capitalization of development costs. Operating income in the third
quarter was adversely affected by a deficit of SEK 472 M in Volvo's
Swedish pension foundation.

Operating income                      Third quarter    First nine months

SEK M                                     2001    2000    2001    2000
Global Trucks                             (340)     53     449     729
Buses                                     (185)     65    (293)    278
Construction Equipment                     266     282     755    1333
Marine and Industrial Power Systems        141     121     530     421
Aero                                       118      72     564     460
Financial Services                          69     220     245    1348
Other                                     (281)   (122)    163     429
Operating income(b)                       (212)    691    2413    4998
Restructuring costs                      (1406)     --   (2725)     --
Operating income                         (1618)    691    (312)   4998

(b) Excluding restructuring costs

    For more information, please see the full report, which is available on www.volvo.com.

    AB Volvo

    October 24, 2001