Volvo Penta Sales Soar During 2Q 2002

Volvo Penta's sales continued to increase during the first quarter of 2002. Total sales amounted to slightly under one million dollars, which was an increase of 13 percent compared with the year-earlier period. Volvo Penta thus achieved the best sales results ever in the company's history.

In releasing its financial report on operations for the first quarter 2002, it shows that Volvo Penta´s successes continue, due to strong increases within all three of the companies business segments: Marine Leisure, Marine Commercial and Industry.

Within Marine Leisure, Volvo Penta noted continued sales increases from previously high levels in Europe. The greatest increase, however, was attributable to the strong improvement in North America.

Volvo Penta also noted better results with respect to operating income during the first quarter. Despite this, Volvo Penta reported lower earnings than during the corresponding period last year, due to changes in accounting principles for the Volvo Group. The reported operating income amounted to $14 million, compared with $16.1 million during the preceding year.

The Volvo Group´s total net sales during the first quarter of 2002 amounted to $8 million compared to $4.2 million the correspondent period the previous year.