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

Preparation of Summary Third-Quarter Results

(1) Summary of Consolidated Statements of Income
	(Millions of yen, except for per share data)
	Nine months ended December 20, 2005	Change (%)	Nine months ended December 20, 2004	Year ended March 20, 2005
Net sales	228,179	4.0	219,332	309,615
Operating income	13,915	28.7	10,810	17,527
Ordinary income	14,021	29.0	10,873	17,414
Net income	5,761	23.6	4,662	1,860
Net income per share (Yen)
Basic	24.91	-	20.15	7.80
Diluted	22.90	-	18.52	7.30

The global economy including our main markets in Europe, North America and Asia continued to be generally positive during these three quarters (nine months ended December, 2005). The economic recovery in Japan also gained strength with increased capital expenditures, improvements in employment conditions, and a gain in personal consumption. The positive economic condition continued also through the third quarter.

In this economic environment, the YASKAWA Group has focused on policies targeted at increasing added value and expanding business through market strategy and innovation. We also strengthened our sales operations, introduced strategic new products in a timely manner, and focused our promotion efforts in high-profit markets and customers to raise profitability.

As a result, net sales at the end of the third quarter rose by 4.0% from the corresponding period last year to 228,179 million yen. Ordinary income rose by 29.0% to 14,021 million yen, and net income also rose by 23.6% to 5,761 million yen.

Segment Results

• Motion Control

Regarding the Motion Control segment, the sales of AC servomotors and controllers were robust as demand recovery in semiconductor- and LCD-related markets gained strength in the third quarter. The sales of AC Drives were also positive especially outside Japan.
As a result, net sales in this segment at the end of the third quarter rose by 5.1% to 98,354 million yen and operating income rose by 3.1% to 8,194 million yen compared to the corresponding period last year.

• Robotics Automation

As for the Robotics Automation segment, even though the sales to the automobile-related market showed a little slowdown due to temporary fall in capital expenditures, the sales of robots for LCD panel transfer continued to be robust.
As a result, net sales in this segment at the end of the third quarter rose by 13.1% to 84,921 million yen, compared to the corresponding period last year, and operating income was up by 47.4% at 7,030 million yen.

• System Engineering

The System Engineering segment progressed reforms in the profit structure by focusing especially on its core businesses and competitive business areas. Although the business of automation systems for wastewater process equipments was affected by intense competition, we took in the demand for steel plant renovation. We also promoted new system instruments such as high-voltage AC Drives and control systems for elevators to develop new markets.
As a result, net sales in this segment at the end of the third quarter were down by 10.9% at 21,994 million yen compared to the corresponding period last year. Although an operating loss of 2,533 million yen occurred, it improved by 718 million yen.

• Information Technologies

The Information Technologies segment was affected by intense competition and reduced sales in high added-value businesses in information services. The computer peripherals market also showed a decrease in demand for floppy disk drives, however the sales of other products recovered.
As a result, net sales in this segment at the end of the third quarter were down by 3.7% at 16,109 million yen compared to the corresponding period last year. Although an operating loss of 40 million yen occurred, it improved by 51 million yen.

• Other

Net sales for the Other segment at the end of the third quarter fell by 26.2% to 6,800 million yen, and operating income was 1,264 million yen, down by 7.7% compared to the corresponding period last year.

(2) Summary of Consolidated Financial Position
	(Millions of yen, except for ratio and per share data)
	As of December 20, 2005	As of December 20, 2004	As of March 20, 2005
Total assets	249,789	268,246	254,438
Shareholders' equity	48,137	40,383	38,366
Shareholders' equity ratio (%)	19.3	15.1	15.1
Shareholders' equity per share (Yen)	208.12	174.56	165.63

(3) Summary of Consolidated Statements of Cash Flows
	(Millions of yen)
	Nine months ended December 20, 2005	Nine months ended December 20, 2004	Year ended March 20, 2005
Net cash provided by (used　in) operating activities	7,972	(9,609)	5,789
Net cash provided by (used in) investing activities	(5,962)	(3,888)	(2,242)
Net cash provided by (used in) financing activities	(9,001)	11,990	(2,823)
Cash and cash equivalents at end of period	11,144	15,612	17,906

Cash flows from operating activities during the third quarter of fiscal year 2005 showed a decrease in trade payables and an increase in the payment of income tax. However, more trade receivables were collected. As a result, cash flows from operating activities in the third quarter were at a positive 7,972 million yen.

Cash flows from investing activities were at a negative 5,962 million yen due to the acquisition of tangible fixed assets.
As a result, free cash flows, which are a sum of cash flows from operating activities and investing activities, amounted to a positive 2,010 million yen.

Cash flows from financing activities were at a negative 9,001 million yen as repayments were made for interest-incurring debt.
As a result, cash and cash equivalents totaled 11,144 million yen at the end of the third quarter, a decrease of 6,762 million yen from the end of last fiscal year.

2. Projected Consolidated Results for the Fiscal Year Ending March 20, 2006

At this moment, no changes are made to the full-year projection disclosed on October 31, 2005.
	(Millions of yen)
	Year ending March 20, 2006
Net sales	314,000
Ordinary income	22,000
Net income	8,000

  Note: Net income per share is projected to be 34.59 yen at the end of the fiscal year

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.