Volvo - the first six months 2001 - short version

Volvo - six months ended june 30, 2001 - short version "The Volvo Group is focusing on a long-term program to create a more competitive industrial structure and on immediate measures to adapt operations to the prevailing market situation. Despite the business climate, some parts of the Group delivered very good results in the second quarter and we noted a number of promising trends. Growth is strong in some parts of the Group, we are gaining market shares, Penta and Aero continue to deliver strong performance and cash flow has been significantly improved", says Leif Johansson, CEO. First six months 2001 2000 Net sales, SEK M 90 848 59 244 Operating income excluding items affecting comparability, 2 625 4 307 SEK M* Operating income, SEK M 1 306 4 307 Income after financial items, SEK M 561 4 318 Net income, SEK M 555 3 153 Sales growth 53% 4% Income per share excluding items affecting comparability, 7,60 13,30 during most recent 12 months period, SEK Return on shareholders' equity, excluding items affecting 3,4 6,1 comparability, % * Items affecting comparability in 2001, pertain to restructuring costs of SEK 1.3 billion. Volvos operating income in the first six months 2001 was also favorably affected with SEK 941 M attributable to capitalization of development costs, of which SEK 451 in the second quarter. Operating income by business area Second First six quarter months SEK M 2001 2000 2001 2000 Global Trucks 639 31 789 676 Buses (25) 180 (108) 213 Construction Equipment 408 740 489 1 051 Marine and Industrial Power 222 197 389 300 Systems Aero 286 278 446 388 Financial Services 63 678 176 1 128 Other 530 403 444 551 Operating income 2 123 2 507 2 625 4 307 Items affecting comparability - - (1 319) - Operating income 2 123 2 507 1 306 4 307 Operating income in the second quarter 2001 includes: · Gain on sale of shares in MMC of SEK 574 M (Global Trucks) · Gain on sale of the insurance operations in Volvia of SEK 562 M (Financial Services), offset by increased provisions for US credit losses of SEK 670 M · Dividend from Scania of SEK 637 M. For more information please see the full report, which is available on www.volvo.com. July 24, 2001 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/07/24/20010724BIT00040/bit0002.doc http://www.waymaker.net/bitonline/2001/07/24/20010724BIT00040/bit0002.pdf

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The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The headquarter is located in Gothenburg, Sweden.

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