Volvo Group - Condensed report on 2008 Operations

• In the fourth quarter net AB Volvo sales decreased by 9% to SEK 77 billion (£ 6.4bn) (2007 = SEK 85bn)

• For the full year AB Volvo net sales increased by 6% to SEK 304 billion (£ 25.2bn) (285)

• The fourth quarter operating loss amounted to SEK 999 M (£ 82.8m) (Income: 5,775)

• For the full year operating income amounted to SEK 15,851 M (£ 1,312.5m) (22,231)

• In the fourth quarter basic and diluted earnings per share amounted to a negative SEK 0.67 (Positive 2.00). Full-year earnings per share amounted to SEK 4.90 (7.37)

• In the fourth quarter working capital in the Industrial Operations was reduced by SEK 5.1 billion contributing to a positive operating cash flow of SEK 1.8 billion

• The Board of Directors proposes an ordinary dividend of SEK 2.00 per share

Slowing truck markets
After a strong first half of 2008 with registrations of trucks on very high levels in Europe, the truck market has decelerated through the course of the second half of 2008. The total number of registrations in Europe 29 (EU + Norway and Switzerland) decreased by 3% to 318,700 heavy trucks in 2008 (328,905) according to preliminary statistics. In 2008, the total market for heavy trucks (Class 8) in North America decreased by 11% to 184,938 trucks compared with 207,847 trucks in 2007. The decrease is a consequence of the weak US economy with lower freight volumes and a drop-off in the activity in the construction sector.

In South America demand has weakened in recent months, but was boosted by strong sales earlier in the year. The Brazilian market grew by 35% to 78,632 heavy trucks (57,817) in 2008.

The Chinese market for trucks over 14 tons grew by 11% to 550,126 trucks (494,542) with a sharp decline in registrations during the fourth quarter.

The Japanese market for heavy trucks amounted to 34,898 vehicles (42,717), and saw a decrease of 18%.

The market in India has slowed down significantly and full-year registrations declined by 17% to 159,618 trucks (193,105).

Truck deliveries decreased The overall delivery pace of Volvo Truck operations declined during the fourth quarter of 2008. In total, 28,035 trucks were delivered during the quarter, which was 12% fewer compared to 31,889 trucks in the same quarter the preceding year.

Deliveries decreased by 28% in Europe and by 31% in North America. The only markets showing increased deliveries are Asia, driven by deliveries to the Middle East, and South America.

Thanks to competitive products and strengthened market channels Volvo Trucks gained market share in several important markets during 2008.

Further adjustments of production levels To adapt to lower demand globally Volvo Trucks has reduced production rates in the industrial system. As a consequence, approximately 4,000 employees in Europe, the US, Brazil and Australia have been given notice of redundancy. During the fourth quarter a significant number of shutdown days were implemented in the European plants. A cost-reduction plan covering all of Volvo Trucks is also being implemented in order to meet the lower sales levels.

Development and testing of the SCR technology being used by Mack and Volvo Trucks for 2010 emission regulations in North America is in advanced stages, yielding near zero emissions, enhanced engine performance and significant improvements in fuel economy. Reports from both Mack and Volvo customers testing SCR-equipped trucks continue to be very positive.

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Iveco assembles wide-ranging green fleet for Low Carbon Vehicle Show Iveco will be exhibiting a five-strong line-up of alternative fuel and traction system vehicles at the third Low Carbon Vehicle Show, being held at the Millbrook Proving Ground on 15 and 16 September 2010. Product Director Martin Flach will also be presenting the company’s two-tier strategy for low carbon vehicles during the fleet seminar on the first day of the Show. Date: 08/09/2010

Putting on a show Stardes Ltd, who provide logistics services to the music, concert and entertainment industry, have added two new Schmitz Cargobull FP25 dry freight box trailers to their fleet. Date: 08/07/2010

MAN Nutzfahrzeuge receives major orderfor 350 trucks Belgian-based H. Essers Group has placed a large order for no fewer than 350 vehicles with MAN, thus confirming its confidence in the German engineering company with whom the group has collaborated for more than 15 years. The 350 vehicles will be delivered during the course of 2010 and 2011, and will be deployed throughout Europe. Date: 08/07/2010

Linde helps to keep a train moving for JM Murdoch JM Murdoch is used to carrying a wide range of products on its specialist fleet of road vehicles, but sometimes it needs extra equipment to handle the loading and unloading of a particularly unusual cargo. Date: 29/06/2010

Coca-Cola Enterprises trials first compressed biomethane powered Stralis Coca-Cola Enterprises Ltd (CCE) has begun trials with an Iveco Stralis Active Day 21 tonne distribution vehicle running on compressed biomethane (CBM). It marks the first CBM-powered commercial vehicle to be operated anywhere in the world by CCE, and the first such Stralis to be delivered in the UK. Date: 17/06/2010

TRUCKS OF THE FUTURE; CLOSER TO REALITY THAN YOU THINK Progress is getting ever faster. In just ten years’ time trucks are going to be a lot different to those of today. At least that is according to Rikard Orell, Design Director at Volvo Truck Corporation and one of the brains behind Concept Truck 2020, the Volvo Truck Corporation's bold vision for the future. Date: 10/06/2010

Iveco Eurocargo sets the standard for City Link’s 7.5 tonners Express delivery company City Link has selected the Iveco Eurocargo as its vehicle of choice for 7.5 tonne operations, after evaluating a range of different products on the market. City Link’s 200-strong 7.5 tonne fleet of box body and curtainside vehicles are used primarily for urban distribution and are operated by a network of owner-drivers and contractors throughout the UK, with every vehicle liveried in its distinctive green and yellow corporate livery. Date: 10/06/2010

Actavis selects Hellmann Healthcare Logistics as its service provide Hellmann Healthcare Logistics (HHL) – the vertical subsidiary of Hellmann Worldwide Logistics – has been awarded the contract to manage the regional hub and distribution of Actavis products at HHL’s dedicated Middle East Healthcare Distribution Centre in Dubai. It was HHL’s “compliance first” approach which impressed the Actavis Group and in turn the world players in first-class generic pharmaceuticals will utilise a myriad of specialist services HHL has to offer. Date: 10/06/2010

GEFCO named European Logistics Company 2010 Leading transport and logistics provider GEFCO has been named European Logistics Company 2010 by the Institute of Transport Management (ITM). The company was also awarded the highly coveted Automotive Logistics Supplier 2010 award by the transport industry body. Date: 27/05/2010

GMA CELEBRATE SILVER JUBILEE WITH NEW VOLVO TRUCKS Ipswich-based GMA Warehousing and Transport have established a new venture in Felixstowe and have put a dozen new Volvo FH-460s on the road to mark the launch. GMA are already one of East Anglia’s best-known warehousing specialists operating throughout the UK, and are a Volvo operator of 25 years standing. Date: 21/05/2010

GEFCO launches rail service between Vesoul (France) and Kaluga (Russia) GEFCO, in partnership with Captrain Deutschland and Transcontainer, is launching a rail transport service for semi-knocked down automotive components between Vesoul in France and Kaluga in Russia. This multimodal logistics project is one of Europe’s most ambitious in terms of volume. Date: 12/04/2010

Kumho to supply tyres for the Mercedes-Benz Sprinter Kumho has announced the expansion of its already fruitful partnership with Daimler AG by supplying tyres for original equipment (OE) fit to the Sprinter range of Mercedes-Benz vans. The contract relates to vehicles sold in Europe, North America and Asia, and comes into force this month Date: 17/03/2010

Allport Limited Receives First Units of Zenloc Container Security Alarm Zenloc Security Systems Limited (www.zenloc.com) is proud to announce that Allport Limited, the UK’s leading independent freight forwarder, is the first company in the world to specify and fit the much-heralded Zenloc Container Alarm. The inventor of this award-winning freight alarm, Barry Schofield, personally delivered the first units to the Allport offices at The Haven in Ipswich. Date: 10/03/2010

Philippe Gilbert appointed Executive Vice President of Geodis Wilson Philippe Gilbert has been appointed Executive Vice President of Geodis Wilson. Peter Nevhagen who spearheaded the division together with Philippe Gilbert during the transition period will remain a member of the Board as appointed Chief Operating Officer of Geodis Wilson. Geodis’ freight management division is hence from now on under one single leadership. Date: 24/02/2010

Schmitz Cargobull has supplied 10 new refrigerated trailers to Ireland-based Hannon Transport. The trailers are the latest additions to Hannon’s 90+ trailer fleet and will go in to service as part of the company’s flower and plant groupage and full-load distribution division which operates out of Holland. Date: 23/02/2010

Geodis Calberson wins substantial new contract with global manufacturer UK Company awarded three year contract by Donaldson Filtration (GB) part of the Donaldson Filtration Group Geodis Calberson, part of the major international logistics group Geodis, has won a substantial new contract with a major global manufacturer of filtration systems. Date: 14/01/2010

Agility on the move for Starco STARCO Group, Europe's leading supplier of tyres, tubes, wheel rims, complete wheels and stub axles, has commissioned Agility, global leader in the provision of complete logistics solutions, to carry out its procurement logistics. One key factor in the decision was Agility's tracking solution that makes it possible for STARCO to further enhance its supply chain and shorten its workflows. Date: 12/01/2010

CTL Logistics performance in 3Q09 - We are at our best CTL’s market share has reached almost 10% after three quarters of 2009. The largest polish independent freight operator’s performance in terms of carried tonnage shows a 15% rise year-on-year. Date: 09/12/2009

Katrineholms Logistikcentrum to close major deal with Van Dieren Dutch logistics company Van Dieren Maritime BV has now decided to establish a presence in Katrineholm. The company will build a hub for its mid/north Swedish operations at Katrineholms Logistikcentrum (Katrineholm Logistics Centre). Date: 04/12/2009

New trailers support growth Microrent plc, one of Europe’s leading suppliers of IT and Audio Visual (AV) equipment to the events industry, has added Schmitz Cargobull Mega Dry Freight trailers to its fleet of vehicles. Microrent supply a comprehensive range of high value IT and AV equipment – from Plasma screen televisions to sound systems. Their clients are companies who need such equipment to enhance a corporate event – be it a training session in one room, an exhibition stand at a major trade show or, perhaps, an AGM. Date: 02/12/2009

Volvo group has entered into an agreement with China National Duty Truck Group Co, Ltd to sell it's equity interest in Jinan Huawo truck corporation The Volvo Group, Sinotruk (BVI) Limited and China National Heavy Duty Truck Group Corporation (CNHTC) have signed an agreement whereby Sinotruk (BVI) Limited, a wholly- owned subsidiary of China National Heavy Duty Truck Group Corporation, and CNHTC agrees to purchase all of Volvo Group’s equity interest in Jinan Huawo Truck Corporation (Joint Venture), in which Volvo Group currently holds a 50 per cent equity interest. The agreement is subject to approval by the P.R.C. authorities. Date: 19/11/2009

Stobart Group pioneers the first fully refrigerated train service from Spain At 00.00am today history was made when the new Stobart Rail train service exited Eurotunnel and arrived in Britain on schedule after a 1,100 mile journey from Valencia. The new weekly service, in conjunction with rail operator DB Schenker, provides for the first time a low carbon alternative for retailers and consumers, for the import of fresh Spanish produce. Date: 30/10/2009

Lange recruited to head Octavian's continuous improvement strategy Hoddesdon based Premium Product Logistics Provider Cert Octavian has appointed ex-Toyota Motor Manufacturing (UK) Ltd lean logistics professional John Lange as Head of Continuous Improvement. Date: 26/10/2009

Impact of economic crisis on the road freight transport industry keeps worsenin IRU warns UN governments of the severe impact of the economic crisis on the road transport industry, whose situation is a major factor in the fast or slow recovery of the economy as whole, and tables concrete proposals to offset this worrying trend. Date: 11/09/2009

Royal Mail rewarded for truck safety innitiative Every year, in collaboration with Volvo Trucks, EuroTra (European Transport Training Association) selects the company that has made the greatest efforts to increase traffic safety and to improve the driver’s working environment. It was announced today that the winner of the EuroTra Safety and Innovation Award 2009 is Royal Mail Network - the British national postal service. Date: 19/08/2009

Old versus new at Hendersons: 15 years of Gray & Adams double deck innovation The Henderson Group, based in Newtownabbey, Co. Antrim, was one of the pioneers of the double deck trailer in the food distribution industry. The company was one of the first to venture into the operation of double deck trailers and had their first double deck manufactured by Gray & Adams Ltd. in 1994. At this time, Gray & Adams was only manufacturing this type of trailer in very small volumes and was still developing the product technically. Over the years, Gray & Adams has refined the double deck manufacturing process, making a number of significant changes and additions which have resulted in double decks now accounting for around 35% of Gray & Adams entire trailer production. Date: 31/07/2009

Don't tyre of best practice please the Industrial Tyre Association Len Sambrook Chairman of ITAA leading tyre body calls for more action to reduce the risks of making false economies when it comes to the selection and fitting of industrial tyres. Leading figures in the tyre industry have voiced their concerns over the hazards of failing to adhere to strict standards when purchasing and fitting industrial tyres. At the Industrial Tyre Association (ITA), evidence of cutting corners during the economic downturn to save costs on tyres have left many alarmed. Date: 20/07/2009

Volvo's leading safety invention celebrates it's 50th anniversary Volvo Trucks has long been the industry leader in the field of passive safety, that is to say technology that helps protect those involved in a collision. This year marks 50 years since Volvo first introduced the three-point safety belt – an invention that has saved more lives in traffic than any other technical feature. Date: 16/07/2009

Yearsley adds to its trailer fleet with outright purchase of 115 Schmitz Cargobull units The Yearsley Group has added to its trailer fleet with the acquisition of 115 refrigerated trailers from Schmitz Cargobull. The trailers, which have been built at Schmitz Cargobull’s recently revamped UK factory at Harelaw, County Durham, were purchased outright by Yearsley and will be used on routes predominantly in the UK – although some mainland European work will be undertaken. Date: 14/07/2009

Caught on camera - reduce risk for fleet with Truscene™ How would you like to reduce your fleet accidents by up to 70% while at the same time improving driver behaviour and saving insurance costs resulting from road traffic crashes? Look no further than Truscene™, a revolutionary digital camera system which can be easily installed into commercial vehicles as a risk management tool. Date: 02/07/2009

Geodis Wilson Spain appoints new managing director Geodis Wilson Spain has announced the appointment of Alain Reich as the new Managing Director. Based in Madrid, Alain Reich will be responsible for the freight forwarding activities, as well as for developing and expanding the business in the future. Date: 01/07/2009

Palletforce is first to use new trailer design Innovative commercial vehicle designers Wilson Trailers have developed the UK’s first step frame double deck giving unrestricted loading access by eliminating all curtain restrictions, signalling the future of vehicle design for the palletised distribution industry. Curtainclear®’ allows curtains to fully clear the sides of the trailer all the way to the rear, giving operators and drivers full side access to both top and bottom decks to reduce health and safety issues, achieve full pay load and improve speed of access. Date: 23/06/2009

Aramex opens wholesale express network across Germany Aramex (DFM: ARMX), the global logistics solutions provider, today announced the opening of its new offices across Germany, further expanding the company’s presence in the country and providing enhanced wholesale express services to its customers. Date: 18/06/2009

New head of Business Development for Norbert Dentressangle Norbert Dentressangle has appointed Neil Adcock to head up the continued development of its UK logistics business. With 15 years’ experience in a variety of analytical and business development roles at both Wincanton and, more recently, CEVA Logistics, Neil brings a wealth of experience to his new role. Date: 05/06/2009

British Airways World Cargo announces Africa, Middle East, Asia and Pacific reorganisation British Airways World Cargo has today announced a reorganisation of its commercial team across Africa, the Middle East, Asia and Pacific regions. New appointments in the region are listed below and all report direct to Tony Nothman, senior vice president sales and customer service Middle East, Africa, Asia and Pacific, unless otherwise stated. Date: 04/06/2009

The driver in focus for Volvo Truck's new traffic and product safety director The interaction between the driver and truck lies at the very heart of Volvo Trucks’ world-leading safety work. “With increasing numbers of advanced support systems in the trucks, it is more important than ever to focus on the person behind the wheel,” says Volvo Trucks’ new Traffic and Product Safety Director Carl Johan Almqvist. Date: 04/06/2009

Dachser establishes its own company in Brazil Kempten/Indaiatuba. June 2, 2009. The joint venture partners Dachser and Logimasters are reorganising the business segments in Brazil and terminated their mutual joint venture with effect from March 31, 2009. Date: 03/06/2009

Graveleau becomes Dachser Kempten/La Verrie. 13 May 2009. Ten years after their merger, the internationally operating logistics provider, Dachser, and its French subsidiary, Graveleau, have grown together to become a single organic entity. This is now being reflected in the name: Graveleau is to be rebranded as Dachser. Date: 14/05/2009

Finnlines to launch new Baltic services Finnlines, the leading ro-ro operator in the Baltic, will start-up on June 1st a set of new, fast, reliable and comfortable Motorways of the Sea for freight and passengers between Finland and Poland (Helsinki/Gdynia/Helsinki) and between Poland and Germany (Gdynia/Travemünde/Gdynia). Date: 13/05/2009

Pall-Ex delivers FURTHER EUROPEAN opportunities Multi-award-winning Pall-Ex has announced further expansion into mainland Europe with plans to create three new palletised freight networks. The UK leader in the field of palletised freight distribution, Pall-Ex has unveiled plans to take its proven commercial and operational model to the Iberian Peninsula, Poland and the Benelux countries of Belgium, the Netherlands and Luxembourg and is now inviting well established and forward thinking logistics companies which may be interested in becoming either a principal national partner or a network member, to contact them. Date: 21/04/2009