Volvo AB

Volvo - report on nine first months 2002 - short v

VOLVO - REPORT ON NINE FIRST MONTHS 2002 - SHORT VERSION

"Despite the difficult business climate, the Group's third - and usually
weakest  quarter - contained a number of positive trends. Most important
is  the  increased contribution from the truck operations, where we  now
see  clear effects of synergies. In Western Europe, the demand  for  the
new  Volvo and Renault models continued to be strong. Both brands gained
market  shares  and showed improved profitability. We  have  also  noted
underlying improvements in North America, even though the sales increase
primarily was a result of the peak linked to the implementation  of  the
new  emission standard. On the negative side, the deep downturn  in  the
aviation  industry  seriously affected our aerospace operations  in  the
third  quarter,  which  is  reflected in  the  on-going  adjustments  of
capacity," says Leif Johansson, CEO.

First nine months                                        2002       2001
Net sales, SEK M                                      131 203    131 982
Operating income excluding restructuring                2 014      2 413
costs, SEK M
Operating income, SEK M                                 2 014      (312)
Income after financial items, SEK M                     1 276    (1 319)
Net income, SEK M                                         755      (980)
Sales growth, %                                           (1)         51
Income per share during most recent 12                    0.60      0.70
months period, SEK
Return on shareholders' equity, %                         0.3        2.4
Operating income                    Third quarter  First nine months
SEK M                              2002     2001    2002      2001
Trucks                              673    (340)     682       449
Buses                              (84)    (185)   (127)     (293)
Construction Equipment              120      266     453       755
Volvo Penta                         117      141     488       530
Volvo Aero                         (72)      118      46       564
Financial Services                  126       69     361       245
Other                              (63)    (281)     111       163
Operating income*                   817    (212)   2 014     2 413
Restructuring costs                   -  (1 406)       -   (2 725)
Operating income                    817  (1 618)   2 014     (312)
*excl restructuring costs
Q3 R&D Capitalization: Total 289, Trucks 184, Buses 20,
Construction Equipment 36, Volvo Penta 16, Volvo Aero 33
Q3 Pension Foundation deficit: Total 302, Trucks 99, Buses 14,
Construction Equipment 45, Volvo Penta 18, Volvo Aero 41,
Financial Services 1, Other 84

For more information, please see the full report, which is available  on
www.volvo.com.
AB Volvo, October 24, 2002