Volvo Group ; Nine Months Ended September 30, 2008

STOCKHOLM, Sweden October 24, 2008: Volvo (STO:VOLVA)(STO:VOLVB)Net sales increased by 2% to SEK 69.6 billion (68.4) in the third quarter

In the third quarter, operating income declined by 37% to SEK 3,177 M (5,010)

In the third quarter, basic and diluted earnings per share declined by 36% to SEK 0.98 (1.54)

Operating cash flow in Industrial operations was negative in amount of SEK 6.1 billion (neg. 0.4)

Significant impact from increased costs for raw materials and components

Increased research and development efforts ahead of new emission regulations and for hybrid projects

Slowdown in demand and restructuring costs

Volvo Group
	Third quarter		First nine months
	2008	2007	2008	2007	Change,%
Net sales Volvo Group, SEK M	69,604	68,367	226,713	200,849	13
Operating income Volvo Group, SEK M	3,177	5,010	16,850	16,457	2
Operating income Industrial operations, SEK M	2,786	4,555	15,691	15,186	3
Operating income Customer Finance, SEK M	391	454	1,159	1,270	(9	)
Operating margin Volvo Group, %	4.6	7.3	7.4	8.2
Income after financial items, SEK M	2,898	4,571	16,520	15,948	4
Income for the period, SEK M	2,000	3,149	11,364	10,935	4
Diluted earnings per share, SEK	0.98	1.54	5.58	5.37
Return on shareholders' equity, rolling 12 months, %			18.9	17.3