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 2006
  (March 21, 2006 to June 20, 2006)
(Note: This document was translated from the financial statement submitted to the Tokyo Stock Exchange for the period stated above. The figures under one million are rounded off.)

(1) Summary of Consolidated Statements of Income
	(Millions of yen, except for per share data)
	3 months ended June 20, 2006	Change	3 months ended June 20, 2005	Change	Year ended March 20, 2006
Net sales	83,982	25.6%	66,861	4.4%	322,916
Operating income	6,605	144.8%	2,697	131.5%	24,486
Ordinary income	6,469	170.6%	2,391	136.0%	24,331
Net income	719	27.7%	563	-	10,157
Earnings per share (basic, Yen)	3.10		2.44		43.18
Earnings per share (diluted, Yen)	3.03		2.34		39.72

Progress on the consolidated business results

   The Motion Control segment experienced positive conditions in the semiconductor and electronic components markets in the first quarter. As for the Robotics segment, (The name of the segment was changed from the former "Robotics Automation" this fiscal year.) although a temporary fall in demand was seen in the Japanese automobile-related market because of capital expenditure adjustments, overseas markets continued to be steady. Control systems for loading and unloading cranes for the Chinese market contributed to sales increase for the System Engineering segment. All regions including Japan, the Americas, Europe, and Asia enjoyed good business conditions, and exchange rates also contributed to the increase in sales and profits.

   As a result, net sales in the first quarter were up by 25.6% at 83,982 million yen compared to the corresponding period last year. Operating income increased 2.4 times to 6,605 million yen and ordinary income increased 2.7 times to 6,469 million yen. Net income was up by 27.7% at 719 million yen, even though impairment loss of 2,030 million yen on fixed assets was recorded. All these results marked record highs for the first quarter.

Segment Results

• Motion Control

   The demand for AC servodrives continued to be robust in the semiconductor and electronic components markets, and high demand for AC Drives also continued especially in overseas markets.
   As a result, net sales in the first quarter rose by 27.4% from the corresponding period last year to 36,353 million yen. Ordinary income increased 2.6 times to 4,698 million yen.

• Robotics

   Although a temporary fall in demand was seen in the Japanese automobile-related market because of capital expenditure adjustments, the demand in the LCD-transfer related markets and semiconductor-manufacturing equipment markets recovered, and the markets in the Americas and Europe also continued to be steady.
   As a result, net sales in this segment rose by 18.8% to 30,162 million yen, compared to the corresponding period last year, and operating income was up by 3.4% at 2,002 million yen.

• System Engineering

   Sales of control systems for loading and unloading cranes for the Chinese market increased, while the segment has undergone structural reforms continuing since the previous fiscal year.
   As a result, net sales in the System Engineering segment during this quarter increased by 61.4% to 9,999 million yen, compared to the corresponding period last year. Although operating loss of 267 million yen occurred, it improved by 766 million yen from the corresponding period last year.

• Information Technologies

   As for the Information Technologies segment, positive market conditions have continued for YE DATA INC. since the second half of the previous fiscal year for its silicon media products for multimedia equipments, laser marking systems, and data recovery services. Also, businesses of YASKAWA INFORMATION SYSTEMS Corporation including its system integration for telecommunication businesses and other business solutions were robust. The demand for control software for semiconductor and LCD equipment manufacturers, and application software was also high.
   As a result, net sales increased by 26.1% to 5,540 million yen, compared to the corresponding period last year. Although operating loss of 326 million yen occurred, it improved by 84 million yen.

• Other

Net sales for the Other segment fell by 17.8% to 1,925 million yen, and operating income was 481 million yen, up by 18.2% 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, 2006	3 months ended June 20, 2005	Year ended March 20, 2006
Total assets	251,239	245,984	255,222
Net assets	55,794	38,830	52,750
Shareholders' equity ratio* (%)	20.5	15.8	20.7
Net assets per share	221.75	167.88	226.51
*Shareholders' equity ratio =	Total shareholders' equity + Total evaluation and translation adjustments Total assets

(3) Summary of Consolidated Statements of Cash Flows
	(Millions of yen)
	3 months ended June 20, 2006	3 months ended June 20, 2005	Year ended March 20, 2006
Net cash provided by (used in) operating activities	6,148	(9,682)	18,724
Net cash provided by (used in) investing activities	(1,297)	(1,697)	(9,729)
Net cash provided by (used in) financing activities	(2,543)	3,618	(14,934)
Cash and cash equivalents at end of period	14,373	10,172	12,102

Changes on the consolidated financial position

Assets, liabilities, and net assets

   Current assets decreased by 1,286 million yen from the end of the previous fiscal year and were 167,905 million yen. This is mainly because trade notes and accounts receivable decreased by 8,779 million yen and inventories increased by 5,651 million yen.
   Fixed assets decreased by 2,696 million yen from the end of the previous fiscal year and were 83,333 million yen. This is mainly because property, plant and equipment decreased by 1,789 million yen.
   As a result, total assets were 251,239 million yen and decreased by 3,983 million yen from the end of the previous fiscal year.
   Current liabilities decreased by 1,714 million yen from the end of the previous fiscal year and were 127,259 million yen. This is mainly because trade notes and accounts payable increased by 3,872 million yen and other current liabilities decreased by 5,530 million yen.
   Long-term liabilities decreased by 1,222 million yen from the end of the previous fiscal year and were 68,185 million yen. This is mainly because long-term debt decreased by 990 million yen.
   As a result, total liabilities decreased by 2,937 million yen from the end of the previous fiscal year and were 195,444 million yen.
   Total net assets was 55,794 million yen, which is down by 1,046 million yen compared to the sum of minority interests and shareholders' equity at the end of the previous fiscal year.

Cash flows

   Cash flows from operating activities during the first quarter of fiscal year 2006 were at a positive 6,148 million yen because of 4,429 million yen of income before income taxes and minority interests, and because trade receivables were collected and liquidated.
   Cash flows from investing activities were at a negative 1,297 million yen, because 2,138 million yen was spent for acquisition of property, plant and equipment while sale of property, plant and equipment brought in 1,080 million yen.
   As a result, free cash flows, which are a sum of cash flows from operating activities and investing activities, amounted to a positive 4,851 million yen.
   As for cash flows from financing activities, repayments of long-term debt and payment of a dividend resulted in an expenditure of 2,543 million yen.
   As a result, cash and cash equivalents totaled 14,373 million yen at the end of the first quarter, an increase of 2,271 million yen from the end of fiscal year 2006.

Projected consolidated business results Projected consolidated results for the first half of fiscal year 2006 disclosed on July 3, 2006, were revised as follows.
	(Millions of yen)
	Previous forecast July 3, 2006	Revised forecast	Difference	(%)	6 months ended September 20, 2005
	(A)	(B)	(B)-(A)	(B)/(A)
Net sales	158,000	166,000	8,000	5.1	146,101
Ordinary income	9,500	12,500	3,000	31.6	8,189
Net income	6,895	7,500	605	8.8	2,748

   The previous forecast for the first half of this fiscal year disclosed on July 3, 2006 was revised as demand in the segments of Motion Control and Robotics continues to be steady and earnings are growing.
   At this time, the 2006 full-year financial forecast remains unchanged from the forecast disclosed previously.

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.