VOLVO - SIX MONTHS ENDED JUNE 30 2003 - SHORT VERSION

"The Volvo Group continued to improve its profitability for the fourth
consecutive quarter compared with the corresponding periods in the
preceding year. Earnings improved despite a drop in sales of ten percent
related to the weakening US dollar. It is also encouraging to note that
the Group generated a positive operating cash flow in the first half of
the year. Synergies from the Truck operations contributed a great deal
to the improvement, as did the new and highly successful product program
of Volvo Trucks and the clearly improved profitability of Renault
Trucks," says Leif Johansson, CEO.

                             Second quarter First six months
                               2003    2002     2003    2002
                                                            
Net sales, SEK M             44 593  49 294   85 524  89 679
Operating income, SEK M       2 242   1 559    3 151   1 197
Income after financial        2 043   1 310    2 800     692
items, SEK M
Net income, SEK M             1 722   1 080    2 228     334
Sales growth, %               (9.5)     4.7    (4.6)   (1.3)
Income per share, SEK          4.10    2.60     5.30    0.80
Return on shareholders' 
equity during most       
recent 12 months period, %                       4.2   (2.0)

Operating income              Second quarter First six months
SEK M                           2003    2002     2003    2002
Trucks                         1 023     483    1 550       9
Buses                           (89)      51    (172)    (43)
Construction Equipment           425     464      565     333
Volvo Penta                      212     225      371     371
Volvo Aero                        11      40        5     118
Financial Services               221     120      433     235
Other                            439     176      399     174
Operating income               2 242   1 559    3 151   1 197

Q2 R&D Capitalization: Total 189, Trucks 115, Buses 5, Construction
Equipment -7, Volvo Penta 69, Volvo Aero 5, FinancialServices 2

12 months moving order intake for Trucks through June: total -11%,
Europe -13%, North America -19%

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

AB Volvo, July 23, 2003