Volvo Group – six months ended June 30, 2007

· Net sales increased by 5% to SEK 71.4 billion (68.0) in the second quarter Adjusted for changes in exchange rates, and acquired and divested units,net sales decreased by 1%
· Operating income decreased by 6% to SEK 6.119 M (6.539) in the second quarter
· Income for the period decreased by 14% to SEK 4.030 M (4.680) in the second quarter
· Diluted earnings per share amounted to SEK 1.98 (2.31) in the second quarter
· The Industrial Operation’s operating cash flow amounted to SEK 6.1 billion (6.0) in the second quarter
· Nissan Diesel and Ingersoll Rand Road Development consolidated in the Volvo Group for the first time in the second quarter



Volvo Group
Second quarter First six months
2007 2006 2007 2006 Change
Net sales
Volvo Group 71,446 67,994 132,482 130,729 1%
Operating
income
Volvo Group 6,119 6,539 11,447 11,969 (4%)
Operating
income
Industrial
operations 5,698 6,055 10,631 11,081 (4%)
Operating
income
Customer
Finance 421 484 816 888 (8%)
Operating
margin
Volvo Group 8.6 9.6 8.6 9.2
Income
after
financial
items 5,970 6,457 11,377 11,929 (5%)
Income for
the period 4,030 4,680 7,786 8,678 (10%)
Diluted
earnings
per share,
SEK 1.98 2.31 3.83 4.27
Return on shareholders'
equity last 12 months,
% 17.9 18.6