Volvo - nine months ended September 30, 2003 - short version

"Despite low demand in key markets, the Volvo Group doubled operating
income in the third quarter, compared with the corresponding period in
2002. Our strong product programs, increased efficiency and positive
synergy effects are the main reasons for the improved profitability. The
new product lines from Volvo Trucks, Volvo CE and Volvo Penta continued
to strengthen our positions and contributed to maintaining sales in
several important markets", says Leif Johansson, CEO.
                            
                               Third quarter    First nine
                                                months
                               2003    2002    2003    2002
                                                            
Net sales, SEK M             40 511  41 524 126 035 131 203
Operating income, SEK M       1 617     817   4 768   2 014
Income after financial        1 298     584   4 098   1 276
items, SEK M
Net income, SEK M               956     421   3 184     755
Sales growth, %               (2.4)     0.9   (3.9)   (0.6)
Income per share, SEK          2.30    1.00    7.60    1.80
Return on shareholders' equity 
during most recent 12 months period, %         5.0     0.3


Operating income               Third quarter    First nine
                                                months
SEK M                           2003    2002   2003    2002
Trucks                           944     673  2 494     682
Buses                           (93)    (84)  (265)   (127)
Construction Equipment           210     120    775     453
Volvo Penta                      153     117    524     488
Volvo Aero                       (2)    (72)      3      46
Financial Services               242     126    675     361
Other                            163    (63)    562     111
Operating income               1 617     817  4 768   2 014

Q3 R&D Capitalization (SEK M): Total 17, Trucks 12, Buses 5,
Construction Equipment -10, Volvo Penta 6, Volvo Aero 4
Profit elimination in conjunction with consolidation of Bilias
commercial operations (SEK M): Total 100, Trucks 85 and Volvo CE 15.
Capital gain from divestment of the holding in Bilia of SEK 188 M,
recorded in "other".
12 months moving order intake for Trucks through September: total -5%,
Europe -11%, North America -5%.

For more information, please see the full report, which is available on
www.volvo.com.

AB Volvo, October 23, 2003