Volvo Group - Report on the fourth quarter and full-year 2010

Volvo Group - Report on the fourth quarter and full-year 2010

During the fourth quarter of 2010, the Volvo Group continued to grow at
a good pace with higher sales in all regions, improved profitability and
a very strong cash flow. Year-on-year sales were up 23% to SEK 73.4
billion. Operating income improved to SEK 5.5 billion and the operating
cash flow from Industrial operations amounted to SEK 15.1 billion. As a
result of improved profitability and strong cash flow, net debt in the
Industrial operations is now down to 37% of shareholders' equity, which
is in accordance with our objective.

  · In the fourth quarter, net sales increased by 23% to SEK 73.4
billion (59.8). Adjusted for currency movements, sales increased by 29%.
For the full year, net sales increased by 21% to SEK 264.7 billion
(218.4). Adjusted for currency movements, sales increased by 26%.

  · The fourth quarter operating income amounted to SEK 5,518 M (Loss
SEK 2,316 M). Operating margin in the fourth quarter was 7.5% (Negative
3.9%).
The full-year operating income amounted to SEK 18.0 billion (Loss SEK
17.0 billion).

  · In the fourth quarter, basic and diluted earnings per share amounted
to SEK 1.59 (Negative SEK 0.99).
Full-year earnings per share amounted to SEK 5.36 (Negative SEK 7.26).

  · In the fourth quarter, operating cash flow in the Industrial
Operations was positive in an amount of SEK 15.1 billion (8.6).

  · During the quarter, net debt in the Industrial Operations was
reduced by SEK 13.7 billion and amounted to 37.4% of shareholders'
equity at year end.

  · The Board of Directors proposes an ordinary dividend of SEK 2.50 per
share (0).

“As a result of the Volvo Group's improved profitability, good cash flow
generation, reduced debt level and better market outlook, as well as the
investments that we have made and continue to make in our facilities and
product development, I have confidence in the Group's performance, from
both a short and long-term perspective.” Leif Johansson, President and
CEO.

For an English PDF version of the report, please click here: Volvo Group
Q4 2010
PDF (http://www3.volvo.com/investors/finrep/interim/2010/q4/q4_2010_eng.
pdf)

For an English web version of the report please click here: Volvo Group
Q4 2010
HTML (http://www3.volvo.com/investors/finrep/interim/2010/q4/eng/index.h
tml)

For a mobile version of the report please click here: Volvo Group Q4
2010
mobile (http://www3.volvo.com/investors/finrep/interim/2010/q4/eng/mobil
e/index.html)

Contacts Investor Relations:

Christer Johansson   +46 31 66 13 34
Patrik Stenberg       +46 31 66 13 36
Anders Christensson   +46 31 66 11 91
John Hartwell        +1 212 418 7432

www.volvogroup.com