Listed company name: YASKAWA Electric Corporation
http://www.yaskawa.co.jp/en/
President: Koji Toshima
Stock exchange listings: Tokyo, Fukuoka
Stock ticker number: 6506

1. Summary of Results for the First Quarter of Fiscal Year 2005
  (March 21, 2005 to June 20, 2005)

(1) Summary of Consolidated Statements of Income
	(Millions of yen, except for per share data)
	3 months ended June 20, 2005	3 months ended June 20, 2004	Year ended March 20, 2005
Net sales	66,861	64,035	309,615
Operating income	2,697	1,165	17,527
Ordinary income	2,391	1,013	17,414
Net income (loss)	563	(386)	1,860
Basic earnings (losses) per share	2.44	(1.67)	7.80
Diluted earnings per share	2.34	-	7.30

The Japanese economy during the first quarter showed a continued trend of moderate recovery. Capital expenditures are steadily increasing and the decline in personal consumption came to a halt, but some concerns arose over the slowdown of exports and soaring crude oil prices.

As for the YASKAWA Group, mainly due to growing investments in the automobile-related market, earnings in the Robotics Automation segment showed a strong increase. Regarding the Motion Control segment, the markets for machine tools and metal working machinery continued to be strong.

As a result, net sales in the first quarter rose by 4.4% from the corresponding period last year to 66,861 million yen. Ordinary income rose by 136.0% to 2,391 million yen, and net income also rose by 949 million yen to 563 million yen. Both sales and income in this quarter were higher than those in the corresponding period last year.

Segment Results

• Motion Control

Regarding the Motion Control segment, the Japanese markets for machine tools and metal working machinery continued to be strong, and the sales to other Asian markets were robust.
As a result, net sales in this segment rose by 2.0% to 28,537 million yen, compared to the corresponding period last year, however operating income was down by 11.2% at 1,798 million yen due to reduced sales of products with high added value.

• Robotics Automation

As for the Robotics Automation segment, sales to the automobile-related market remained robust as Japanese car manufacturers increased capital expenditure to improve their production capacity. The sales of robots for handling liquid-crystal glass panels are also increasing for markets in Taiwan and Korea. The sales of robots for applications in semiconductor production as well are on the increase outside Japan.
As a result, net sales in this segment rose by 7.7% to 25,394 million yen, compared to the corresponding period last year, and operating income was up by 188.7% at 1,937 million yen.

• System Engineering

Net sales in the System Engineering segment during this quarter increased by 8.6% to 6,194 million yen, compared to the corresponding period last year. Although operating income was up by 431 million yen as a result of restructuring this segment, an operating loss of 1,033 million yen occurred.

• Information Technologies

The Information Technologies segment made an effort to expand the existing markets and develop new markets. The growth of Data Recovery Services contributed to net sales increasing by 13.7% to 4,392 million yen, compared to the corresponding period last year. However, operating income fell by 24 million yen due to worsening price conditions. An operating loss of 410 million yen resulted.

• Other

Net sales for the Other segment fell by 19.2% to 2,342 million yen, and operating income was 407million yen, down by 5.1% compared to the corresponding period last year.

(2) Summary of Consolidated Financial Position
	(Millions of yen, except for ratio and per share data)
	3 months ended June 20, 2005	3 months ended June 20, 2004	Year ended March 20, 2005
Total assets	245,984	252,011	254,438
Shareholders' equity	38,830	35,698	38,366
Shareholders' equity ratio (%)	15.8	14.2	15.1
Shareholders' equity per share	167.88	154.32	165.63

(3) Summary of Consolidated Statements of Cash Flows
	(Millions of yen)
	3 months ended June 20, 2005	3 months ended June 20, 2004	Year ended March 20, 2005
Net cash provided by (used in) operating activities	(9,682)	(92)	5,789
Net cash provided by (used in) investing activities	(1,697)	(3,543)	(2,242)
Net cash provided by (used in) financing activities	3,618	3,752	(2,823)
Cash and cash equivalents at end of period	10,172	17,198	17,906

Cash flows from operating activities during the first quarter of fiscal year 2005 showed a decrease in trade receivables as they were collected. Trade payables also decreased as payments were made for the materials purchased in the last fiscal year. Inventories increased in order to meet the sales expected in the second quarter. Due to these factors and the payment of income taxes, cash flows in the first quarter were at a negative 9,682 million yen.

Cash flows from investing activities were at a negative 1,697 million yen because of the acquisition of property, plant and equipment and intangible assets. As a result, free cash flows, which is a sum of cash flows from operating activities and investing activities, amounted to a negative 11,379 million yen.

As for cash flows from financing activities, repayments of long-term debt and an increase in short-term debt by 4,635 million yen resulted in an inflow of 3,618 million yen. As a result, cash and cash equivalents totaled 10,172 million yen at the end of the first quarter, a decrease of 7,733 million yen from the end of fiscal year 2004.

2. Projected Consolidated Business Results

(1) Revision of Projected Consolidated Results for the First Half of Fiscal Year 2005 Ending September 20, 2005
	(Millions of yen)
	Previous forecast April 27, 2005	Revised forecast	Difference	(%)	6 months ended September 20, 2004
	(A)	(B)	(B)-(A)	(B)/(A)
Net sales	145,000	146,000	1,000	0.7	146,053
Ordinary income	5,500	7,200	1,700	30.9	7,200
Net income	1,000	2,200	1,300	144.1	2,160

In addition to the growing capital expenditure in the automobile-related market, which contributed to higher earnings in the Robotics Automation segment, the markets for machine tools and metal working machinery grew steadily for the Motion Control segment. Revision of the previous forecast for the first half of this fiscal year was necessary given these factors. At this time, the 2005 full-year financial forecast remains unchanged from the one presented on April 27, 2005.

(2) Projected Consolidated Results for the Fiscal Year 2005 Ending March 20, 2006
	(Millions of yen)
	Year ending March 20, 2006
Net sales	314,000
Ordinary income	20,000
Net income	7,000

Warning
The information within this document is made as of the date of writing. Any forward-looking statements are made according to the assumptions of management and are subject to change as a result of risks and uncertainties. YASKAWA Electric undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.