Volvo – Nine Months Ended September 30, 2006

STOCKHOLM, Sweden--

Net sales increased by 9% to SEK 57,426 M (52,532) in the third quarter
Income for the period rose 34% to SEK 3,939 M (2,935) in the third quarter
Basic earnings per share rose to SEK 9.70 (7.24) in the third quarter
Operating income excluding adjustment of goodwill rose 24% to SEK 4,972 M (4,004) in the third quarter and the operating margin rose to 8.7% (7.6)
Increased profitability within Mack Trucks resulted in a reversal of a valuation reserve for deferred tax receivables and an adjustment of goodwill. In total, this had a positive impact of SEK 336 M on income for the period
Operating cash flow, excluding Financial Services, in the third quarter was negative in an amount of SEK 0.4 billion (neg. SEK 0.7 billion)
Strengthened position in Asia through increased holdings in Nissan Diesel and an agreement to acquire 70% of Lingong, a Chinese manufacturer of wheel loaders

	Third quarter		First nine months
	2006	2005	2006	2005

Net sales, SEK M	57,426	52,532	183,070	165,904
Operating income, SEK M ¹⁾	4,972	4,004	16,941	13,891
Goodwill adjustment	(1,712)	-	(1,712)	-
Operating income, SEK M	3,260	4,004	15,229	13,891
Income after financial items, SEK M	3,144	4,015	15,073	13,872
Income for the period, SEK M	3,939	2,935	12,617	10,113
Basic earnings per share, SEK	9.70	7.24	31.07	24.84
Return on shareholders’ equity during most recent 12 month period, %			19.3	19.0

1) Excluding adjustment of goodwill in the subsidiary Mack Trucks in the third quarter of 2006.

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