Volvo – nine months ended September 30, 2006

• 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.


Contacts

Investor Relations: Christer Johansson
+46 31 66 13 34

Joakim Wahlström
+46 31 66 11 91

John Hartwell
+1 212 418 7432

Noah Weiss
+1 212 418 7431