Six months ended June 30, 1998

First six months

1998

1997

Net sales, SEK M

101,706

89,024

Operating income, excluding items affecting comparability, SEK M

4,697¹⁾

3,948

Operating income

3,547

3,948

Income after financial items, SEK M²⁾

6,109

7,945

Net income, SEK M

4,475

6,462

Income per share, SEK, excluding items affecting comparability and gains on sales of shares, during most recent 12-months period, SEK

13.40

11.00

Return on shareholders' equity, excluding items affecting comparability and gains on sales of shares, %

10.3

9.8

1) Items affecting comparability in the first half-year pertain to reserves for restructuring costs in Buses and Construction Equipment amounting to SEK 240 M and SEK 910 M, respectively.

2) Includes gains on sales of shares amounting to SEK 2,125 M in the first half of 1998 and SEK 3,267 M in the first half of 1997.

Comment by the Chief Executive Officer

The Volvo Group's operations thus far this year have been characterized by a high rate of product renewal and by structural measures designed to yield higher operating efficiency, all in line with the growth strategy that was presented at the end of 1997. Sales increased in all business areas and exceeded SEK 100 billion. Strong sales in Europe and North America compensated for the lower sales and loss of income in markets in Southeast Asia. The product program is being renewed according to plan. The Volvo S80, which was introduced during the spring, was received very favorably, due not least to a number of safety-enhancing and technical innovations, its "environmental certification," and fuel consumption that is among the lowest in the market for vehicles of comparable size and performance.

During the first half of the year a number of steps were taken to achieve a competitive industrial structure. Volvo and Deutz AG, the German engine manufacturer, have signed a letter of intent covering increased cooperation in the field of diesel engines for commercial vehicles. Volvo will concentrate its operations on heavy engines while Deutz will become the Volvo Group's partner in the field of small and medium-size diesel engines. This cooperation is an important step toward an increased emphasis on engine development and will contribute to greater efficiency and improved competitiveness.

As a result of the acquisition of South Korean Samsung's construction equipment division, Volvo's product program and market presence in a highly competitive industry is being strengthened. The acquisition, which offers substantial synergies in both the commercial and industrial sectors, is creating opportunities for rationalization measures, notably in the production of excavators in Eslöv, where cutbacks in personnel will be made. To implement this program, SEK 910 M is being reserved in Volvo Construction Equipment's accounts for the second quarter, affecting otherwise very good earnings in this business area.

In line with the objective of creating a cost-effective industrial structure, Volvo Trucks has reached an agreement in principle with Meritor Automotive Inc. covering the global supply of rear axles. As part of the agreement, Volvo is selling its rear-axle plant in Lindesberg to Meritor. Volvo Cars' wheel assembly plant in Kungälv is being sold to Michelin/Continental.

Volvo Buses, which is in an expansive phase, is continuing its program of integration following a number of acquisitions and the concentration of parts of its European production in Poland. Earnings in Buses, as well, are being charged with reserves for nonrecurring restructuring costs.

The level of activity to achieve good annual growth and profitability is high in all of Volvo's business areas. The present product program, solid order bookings and improved utilization of synergies – combined with the establishment of operations in new and growing markets – have strengthened Volvo's position.

The most important tasks during the remainder of the year include completing the global launch of the Volvo S80 and introducing Volvo Trucks' coming new model while maintaining the highest quality and efficiency in production and distribution. Viewed in a longer perspective, the importance of carrying out Volvo's global expansion in a coordinated and efficient manner is increasing. As we face our opportunities, I feel very confident in our ability to do this in a manner that meets the expectations of both customers and shareholders.

The Volvo Group, first six months 1998

Acquisitions and divestments

With the acquisition, Volvo is consolidating its position as one of the world's largest manufacturers of construction equipment. The acquired business had sales of SEK 5.8 billion in 1997.

Other acquisitions during the first half of 1998 included Volvo Buses' purchase of Carrus Oy, a Finnish manufacturer of bus bodies, and its acquisition of 51% of the shares of Nova BUS, as well as Volvo Trucks' purchase of BRS Truck Rental and Contract Hire (Great Britain).

Half of AB Volvo's holding of 4% of the shares of Pharmacia & Upjohn was sold during the second quarter of 1998. Revenue from the sale amounted to SEK 3.3 billion and Volvo's book profit was SEK 2,1 billion. Plans call for the rest of the shareholding to be sold during the second half of 1998.

Volvo and Deutz plan enlarged cooperation

Volvo and the German Engine Manufacturer Deutz have signed a letter of intent regarding plans to expand their present cooperation in the field of commercial diesel engines.

Deutz will become the Volvo Group's main supplier of small and medium sized diesel engines for construction equipment, trucks, buses and marine and industrial applications. Concerning medium sized engines, future development will be shared by both companies.

At the same time, Volvo will concentrate its commercial diesel engine operations on heavy duty diesel engines in the 8-16 litre displacement range. To complete the Deutz product range, engines of this type shall also be delivered to Deutz.

Final agreements on the enlarged cooperation are expected to be concluded in autumn 1998. The planned broader cooperation will lead to substantial efficiency and cost improvements and strengthening of their respective competitiveness in the market.

To demonstrate the long-term commitment, Volvo plans to acquire a minority shareholding in Deutz corresponding to 10% of the shares. Deutsche Bank has granted an option entitling Volvo to acquire a 10% shareholding in Deutz.

Income summary

Net sales of the Volvo Group increased by 14%, to SEK 101.7 billion, compared with sales in the corresponding 1997 period. Adjusted for the effects of foreign exchange movements and acquisitions, the increase was 11%.

The increase in sales in the first half of the year was attributable primarily to operations in North America (plus 26%) and Western Europe (plus 13%), which together account for 86% of the Group's total sales. Sales in Asia declined by 24% during the first half of 1998. The Asian markets constitute 6% of Volvo's total sales. Volvo continued to show good sales increases in Eastern Europe and South America.

Operating income of SEK 3,547 M includes items affecting comparability in the amount of SEK 1,150 M pertaining to the restructuring of Buses' operations in Europe, SEK 240 M, and in the amount of SEK 910 M in Construction Equipment in connection with the acquisition from Samsung.

Excluding items affecting comparability, operating income amounted to SEK 4,697 M (3,948), an increase of 19% compared with the first half of 1997. Larger volumes of sales and positive effects of foreign exchange movements and cost reduction programs were offset to some extent by costs of retooling for production of the new Volvo S80. In additon, higher selling expenses occurred due to the larger sales volumes and launches of new products.

The operating margin, excluding items affecting comparability, amounted to 4.6% (4.4). Volvo's objective, which is to have an operating margin in excess of 5%, was achieved by Construction Equipment and Aero.

Income from investments in associated companies amounted to SEK 235 M (3,080). The decrease relative to the first half of 1997 was attributable to a gain of SEK 3,027 M on the sale of shares in Pripp Ringnes AB in February 1997.

Income amounting to SEK 2,177 M (334) from other shares and participations consisted largely of a gain of SEK 2,090 M that arose in connection with the sale of shares in Pharmacia & Upjohn Inc.

Net interest income of SEK 293 M (515) was generated through a return of 6.2% on average interest-bearing assets and average loan expense of 7.9%.

Tax expense rose by SEK 225 M, to SEK 1,630 M (1,405) and was equal to an average tax rate of 27%. Tax expense pertained mainly to current taxes in foreign subsidiaries and deferred taxes in Swedish subsidiaries.

Net income amounted to SEK 4,475 M (6,462) and the return on equity, excluding items affecting comparability and gains on the sale of shares, was 10.3%, unchanged from the preceding quarter.

Consolidated income statements, SEK M

First six months

1998

1997

Net sales

101,706

89,024

Cost of sales

(77,732)

(67,973)

Gross income

23,974

21,051

Research and development expenses

(4,844)

(4,489)

Selling expenses

(8,913)

(7,882)

Administrative expenses

(3,745)

(3,459)

Other operating income and expenses

(1,775)

(1,273)

Items affecting comparability

(1,150)

-

Operating income

3,547

3,948

Income from investments in associated companies

235

3,080

Income from other investments

2,177

334

Interest income and similar credits

979

2,028

Interest expenses and similar charges

(686)

(1,513)

Other financial income and expenses

(143)

68

Income after financial items

6,109

7,945

Taxes

(1,630)

(1,405)

Minority interests

(4)

(78)

Net income

4,475

6,462

First six months

Gross and operating margin, %

1998

1997

Gross margin

23.6

23.6

Research and development expenses in % of net sales

4.8

5.0

Selling expenses in % of net sales

8.8

8.9

Administrative expenses in % of net sales

3.7

3.9

Operating margin excluding items affecting comparability

4.6

4.4

Operating margin

3.5

4.4

Financial position

Consolidated balance sheets, SEK M

Volvo Group excl sales financing 1)

Sales financing

Volvo Group
total

980630

971231

980630

971231

980630

971231

Assets

Intangible assets

3,368

3,262

96

22

3,464

3,284

Tangible assets

34,188

32,043

15,893

12,251

50,081

44,294

Financial assets

13,683

14,233

19,359

14,508

27,647

24,527

Inventories

30,074

27,756

217

237

30,291

27,993

Short-term receivables

27,787

23,553

19,764

19,041

47,551

42,594

Marketable securities

14,021

10,930

32

32

14,053

10,962

Cash and bank accounts

6,440

8,807

860

834

7,300

9,641

Total assets

129,561

120,584

56,221

46,925

180,387

163,295

Shareholders’ equity and liabilities

Shareholders’ equity

62,372

60,431

5,395

4,214

62,372

60,431

Minority interests

927

859

43

40

970

899

Provisions

23,203

21,534

1,558

1,419

24,761

22,953

Loans

4,030

2,096

46,795

39,121

50,825

41,217

Other liabilities

39,029

35,664

2,430

2,131

41,459

37,795

Shareholders’ equity and liabilities

129,561

120,584

56,221

46,925

180,387

163,295

The Group's net financial assets, excluding sales financing amounted to SEK 17.3 billion, a decrease of SEK 1.8 billion. Details of the change are specified below.

Cash flow from operations

5,6

Capital expenditures

(4,6)

Investments in leasing assets

(0,5)

Disposals

0,5

Dividend

(2,2)

Others including changes in exchange rates

(0,7)

Change after dividend

(1,9)

Acquired companies 1)

(3,0)

Sales of shares, net

3,1

Total change

(1,8)

1) Includes purchase price and net financial debt in acquired companies.

Shareholders' equity increased by SEK 1.9 billion. Net income for the period provided SEK 4.5 billion, while the dividend to Volvo's shareholders reduced shareholders' equity by SEK 2.2 billion.

Cash flow analysis, SEK billions

Volvo Group excl sales financing

Sales financing

Total

Net income

4.3

0.2

4.5

Depreciation and other noncash-related items

1.3

1.3

2.6

Change in operating capital and deferred tax liabilities

0.0

(0.5)

(0.5)

Cash flow from operations

5.6

1.0

6.6

Capital expenditures

(4.6)

0.0

(4.6)

Investments in leasing assets

(0.5)

(5.3)

(5.8)

Disposals

0.5

0.4

0.9

Investments in shares, net

3.1

3.1

Long-term receivables, net

0.5

(5.0)

(4.5)

Acquisitions and sales of companies

(2.2)

0.0

(2.2)

Remaining after net investments

2.4

(8.9)

(6.5)

Increase in loans

9.5

Dividend paid to AB Volvo's shareholders

(2.2)

Change in liquid funds, excluding translation differences

0.8

Translation differences in liquid funds

0.0

Change in liquid funds

0.8

In the cash flow analysis, the effects of major acquisitions and divestments of subsidiaries have been excluded from other changes in the balance sheet. The effects of changes in foreign exchange rates at translation of foreign subsidiaries have been excluded, since they do not affect cash flow.

Key ratios

July 1997-June 1998

Jan-Dec
1997

Return on shareholders equity, %

13.9

17.4

Return on shareholders' equity excluding items affecting comparability and gain on sales of shares, %

10.3

10.4

Income per share, SEK

19.10

22.90

Income per share, excluding items affecting comparability and gain on sales of shares, SEK

13.40

12.70

Shareholders' equity and minority interests as percentage of total assets

35.1

37.6

Shareholders' equity and minority interests excluding sales financing, as percentage of total assets

48.9

50.8

Net financial assets, SEK billion

17.3

19.1

Net financial assets as percentage of shareholders’ equity and minority interests

27.4

31.2

Net sales, SEK M

First six months
1998

First six months
1997

Change in %¹

July 1997-
June 1998

Jan-Dec 1997

Cars

50,453

48,160

+5

98,746

96,453

Trucks

30,407

23,506

+28

57,741

50,840

Buses

6,465

5,146

+2

11,901

10,582

Construction equipment

9,077

8,157

+10

17,678

16,758

Marine and industrial engines

2,520

2,286

+10

4,700

4,466

Aero

4,226

3,332

+27

8,370

7,476

Other and eliminations ²

(1,442)

(1,563)

-

(2,829)

(2,950)

Volvo Group total

101,706

89,024

+13

196,307

183,625

Operating income, SEK M

First six months
1998

First six months
1997

July 1997-
June 1998

Jan-Dec 1997

Cars

1,840

2,154

4,196

4,510

Trucks

1,438

688

2,562

1,812

Buses

300¹⁾

244

606

550

Construction equipment

861²⁾

745

1,560

1,444

Marine and industrial engines

121

160

142

181

Aero

235

225

482

472

Other and eliminations 3)

(98)

(268)

(381)

(551)

Operating income, excluding items affecting comparability

4,697

3,948

9,167

8,418

Items affecting comparability

(1,150)

-

(1,150)

Volvo Group total

3,547

3,948

8,017

8,418

Operating margin, %

First six months
1998

First six months
1997

Cars

3.6

4.5

Trucks

4.7

2.9

Buses

4.6¹⁾

4.7

Construction equipment

9.5²⁾

9.1

Marine and industrial engines

4.8

7.0

Aero

5.6

6.8

Operating income, excluding items affecting comparability

4.6

4.4

Items affecting comparability

(1.1)

-

Volvo Group total

3.5

4.4

Cars

The world market for newly registered cars was virtually unchanged during the first half of 1998, compared with the corresponding period a year earlier.

The total market in Europe increased by 7% and the North American market decreased by 1%. The picture in Southeast Asia was fragmented. The market in Thailand decreased by 73%, and the market in Taiwan by just under one percentage point. The downturn in Japan amounted to 14%.

Net sales for Cars amounted to SEK 50,453 M (48,160).

The number of Volvo cars sold during the first half of 1998 was 200,600 (196,250), up 2%. Sales increased despite the phasing out of the Volvo S/V90 and 940. Demand for the Volvo S/V40 was very strong (up 41%) and capacity in the production plant in Born was fully utilized. Larger volumes of sales of the Volvo S/V70 in North America and Europe are offsetting the downturn in Southeast Asia.

The number of Volvo cars registered in Europe increased 4%. But lower sales were recorded in Sweden, England, Denmark and Spain. Competing makes are taking market shares in Great Britain through substantial sales promotion activities. Volvo Cars is now taking steps that have already begun to yield results; registrations of Volvo Cars in Great Britain in June were 18% higher than in June 1997.

Registrations of Volvo cars in North America rose by 10% despite a declining total market. The Volvo S/V70 continues to show a strong trend of sales.

An overall decline in the volume of sales in Asia was offset by sales increases in Europe and North America. Sales of Volvo cars in Japan fell by 14% during the first half of the year, while the total number of sales of imported cars declined by 22%.

Cars' operating income amounted to SEK 1,840 M (2,154). The larger volume of sales, favorable effects of foreign exchange movements and cost-reduction measures – primarily in production and purchasing – did not fully compensate for increased costs. These costs pertained mainly to the introduction and start-up of production of the Volvo S80 and the higher costs of marketing activities generally The operating margin in the first six months of the year was 3.6% (4.5), and the margin in the second quarter was 3.7%.

The launch of the new Volvo S80 was begun during the latter part of May and will continue throughout the summer. The Volvo S80 is further strengthening Volvo's profile by offering a number of safety-enhancing, environmental and technical innovations. For example, it is the first car to be "environmentally certified," in accordance with the ISO 14001 standard, with respect to all phases from production to recycling. It is being produced in Cars' plant in Torslanda, which will have a capacity for 100,000 vehicles in 1999. Sales will start in all markets during the same period, September to November of this year.

Trucks

The total market for heavy trucks in Western Europe and North America continues to be strong. Demand in Brazil is also still high, while the market in Southeast Asia is weak. The world market for heavy trucks in 1998 is estimated to be somewhat weaker than a year ago due to the trend in the East Asian market.

Volvo delivered 41,090 medium-heavy and heavy trucks during the first half of 1998, an increase of 30% compared with shipments in the corresponding period of 1997. Deliveries rose by 22% in Europe and by 51% in North America. Deliveries in South America also rose by 22%. Deliveries in Asia as a whole increased by 18% due to strong demand in the Middle East that compensated for the sharp decline in Southeast Asia.

At the end of May, Volvo's share of the market for heavy trucks in Western Europe amounted to 15.9% (16.2) and its share in the United States was 12.0% (9.2).

Trucks' share of the market in Brazil at the end of June was 22.7% (22.3).

Orders booked during the first half of the year increased by 33%, compared with the year-earlier period. As of June 30, the backlog was 54% larger than on the same date in 1997.

Volvo Trucks' operating income in the first half of the year amounted to SEK 1,438 M (688). The positive trend of sales and higher margins in North America were factors responsible for the improved results. The operating margin was 4.7% (2.9) in the first six months and 5,0% in the second quarter.

On June 15, Volvo Trucks inaugurated its new plant in Hosakote, on the outskirts of Bangalore in Southern India. The plant will have a capaicty of 4,000 trucks per year.

Buses

The total market for heavy buses in Western Europe and North America continued to grow during the first half of 1998. Demand in the South American market remains strong. The markets in Southeast Asia have declined substantially but are being more than offset by continuing strong demand in China.

The number of complete buses and bus chassis delivered increased by 13%, to 4,500 units, compared with 3,990 units in the 1997 period. The increase was largely attributable to the acquisition of Nova BUS, the Canadian company.

Net sales increased by 26%, to SEK 6,465 M (5,146). The greater increase in sales figures relative to the number of buses sold is a result of the strategy to increase sales of complete buses.

Operating income, excluding items affecting comparability, amounted to SEK 300 M (244). Nova BUS and Carrus, acquired during 1998, contributed to the greater part of the increase. Buses' operating margin was 4.6% (4.7) for the first half of the year, and 5.5% in the second quarter. Operating income including items affecting comparability was SEK 60 M (244). The 1998 figure includes restructuring costs of SEK 240 M pertaining to changes in Buses' industrial structure in Europe whereby the company is concentrating parts of its production in the plant in Wroclaw, Poland.

Construction equipment

The world market for construction equipment is continuing to develop favorably, except in Asia Asia where the market in Japan, in particular, has decreased sharply.

Construction equipment's net sales rose by 10%, to SEK 9,077 M. The trend of sales was especially strong in North America but the volumes of business in Europe also increased.

Operating income in the first half, excluding items affecting comparability, amounted to SEK 861 M (745), with an operating margin of 9.5% (9.1) for the first six months, and 11.4% for the second quarter. The higher margin is a result of larger volumes of sales, notably during the second quarter, as well as favorable effects of changes in prices and exchange rates. Operating income in the second quarter was charged with a reserve of SEK 910 M pertaining to costs of restructuring existing operations in connection with the acquisition of Samsung Heavy Industries' construction equipment division. Including this item, Construction equipment incurred an operating loss of SEK 49 M.

The operations acquired from Samsung Heavy Industries were transferred to a newly formed company, Volvo Construction Equipment Korea Ltd., as of July 1, 1998. The company's results are being consolidated in the Construction equipment business area accounts as of the same date.

At the German "Bauma '98" trade show at the end of March, Construction Equipment launched a new generation of compact loaders as well as a heavy wheel-loader and a medium-heavy excavator.

Marine and industrial engines

Net sales of the Marine and industrial engines business area increased by 10% to SEK 2,520 M compared with the preceding year. Sales of marine engines continued to be strong in both Europe and North America. Sales of industrial engines in Europe also increased, but sales to customers in the South East Asia were lower than in the 1997 period.

Higher selling expenses and research and development expenses reduced operating income to SEK 121 M (160) and the operating margin declined to 4.8% (7.0).

Aero

Aero's net sales rose to SEK 4,226 M (3,332), an increase that was attributable primarily to the Commercial Engines and Engine Services, as well as Aviation Support Services.

Operating income amounted to SEK 235 M (225). The decrease in operating margin, from 6.8% to 5.6%, was due mainly to larger research and development expenses costs in the commercial aircraft engine program and in the gas turbine sector.

During the second quarter of 1998 Aero received a contract valued at SEK 200 M from SEP, the French rocket-engine company. The order covers the supply of combustion chambers for the "Ariane 4" European space-rocket during the years 1999-2001. This program has 40% of the market for commercial launches.

Sales financing

Net sales rose to SEK 4,350 M (2,581) and operating income amounted to SEK 214 M (73).

Employees

Parent Company

The Volvo Ocean RaceAs of June 1998 Volvo became the new "owner" of the worldwide nautical competition formerly known as the Whitbread Round The World Race. The new name is "The Volvo Ocean Race" and the first competition will be staged through the years 2001 and 2002. The program involves opportunities for new forms of global marketing.

The interim report for the nine months ended September 30, 1998 will be released on October 21, 1998.

Volvo Group quarterly figures,
SEK M unless otherwise specified

2/1997

3/1997

4/1997

1/1998

2/1998

Net sales

47,175

41,924

52,677

48,839

52,867

Cost of sales

(35,649)

(31,330)

(39,687)

(37,015)

(40.717)

Gross income

11,526

10,594

12,990

11,824

12,150

Research and development expenses

(2,427)

(2,000)

(2,170)

(2,372)

(2.472)

Selling expenses

(4,201)

(3,914)

(5,364)

(4,385)

(4,528)

Administrative expenses

(1,773)

(1,788)

(1,771)

(1,754)

(1,991)

Other operating income and expenses

(1,065)

(1,065)

(1,042)

(1,337)

(438)

Items affecting comparabilities

-

-

-

-

(1,150)

Operating income

2,060

1,827

2,643

1,976

1,571

Income from investments in associated companies

75

85

(236)

99

136

Income from other investments

277

845

(11)

79

2,098

Interest income and similar credits

1,035

929

529

427

552

Interest expenses and similar charges

(710)

(785)

(450)

(248)

(438)

Other financial income and expenses

(40)

(125)

(20)

(59)

(84)

Income after financial items

2,697

2,776

2,455

2,274

3,835

Taxes

(688)

22

(1,322)

(710)

(920)

Minority interests

(48)

(7)

(27)

17

(21)

Net income

1,961

2,791

1,106

1,581

2,894

Depreciations included above

1,539

1,557

2,030

1,933

2.264

Definitions of key ratios
Income per share is calculated as net income divided by the weighted average number of shares outstanding during the period.

Return on shareholders' equity is calculated as net income divided by average shareholders' equity.

Net financial assets/net debt is calculated as liquid funds, short-term receivables and long-term interest-bearing receivables reduced by short-term and long-term interest-bearing liabilities. Net debt does not include net debt in Volvo's sales finance companies, since interest expense in these liabilities is charged against operating income and does not affect consolidated net interest expense.

Operating margin is calculated as operating income divided by net sales.

Volvo car sales, number of units invoiced

First six months

1998

First six months

1997

Change in %

July 1997- June 1998

Jan-Dec 1997

Europe

127,960

121,250

+6

246,670

239,960

Western Europe

124,390

118,300

+5

240,130

234,050

Eastern Europe

3,570

2,950

+21

6,540

5,910

North America

54,030

51,880

+4

104,130

101,980

South America

830

1,250

(34)

1,860

2,280

Asia

14,050

19,110

(26)

31,110

36,170

Other markets

3,730

2,760

+35

7,020

6,050

Total Volvo cars

200,600

196,250

+2

390,790

386,440

Renault cars

16,850

14,440

+17

32,050

29,630

Total cars

217,450

210,690

+3

422,840

416,070

By series

Volvo S/V90¹⁾

7,990

14,900

(46)

21,360

28,290

Volvo 940¹⁾

6,250

18,000

(65)

27,720

39,450

Volvo S/V70

105,050

107,990

(3)

200,730

203,670

Volvo S/V40

77,860

55,360

+41

136,650

114,150

Volvo C70

3,450

0

4,330

880

Total

200,600

196,250

+2

390,790

386,440

1) Production ceased during first half of 1998

Trucks, units invoiced

Europe

20,110

16,490

+22

38,080

34,460

Western Europe

18,090

14,990

+21

34,130

31,030

Eastern Europe

2,020

1,500

+35

3,950

3,430

North America

14,110

9,340

+51

25,680

20,900

South America

3,470

2,850

+22

7,600

6,970

Asia

2,380

2,010

+18

5,070

4,710

Other markets

1,020

850

+20

2,110

1,940

Total trucks

41,090

31,540

+30

78,540

68,980

Volvo bus/bus chassis, units invoiced

Europe

1,970

2,010

(2)

4,150

4,190

North America

880¹⁾

420

+110

1,570

1,110

South America

750

650

+15

1,450

1,350

Asia

700

580

+21

1,530

1,410

Other markets

200

330

(39)

540

670

Total, buses

4,500

3,990

13

9,240

8,730

1) Including the acquisition of Nova BUS as of second quarter 1998.

As of the fourth quarter, 1997, the Volvo Group’s reporting is by market area in accordance with new geographical definitions based on ISO standards. Reporting in prior periods has been adjusted to reflect the new principle.