HFAS11S Yaskawa Electric's net profit for fiscal year 2021 is expected to increase 2.2 times

Yaskawa Electric recently announced that it is expected that the consolidated net profit (international accounting standards) in the fiscal year 2021 (ending February 2022) will reach 41 billion yen, increasing to 2.2 times the previous fiscal year. That's 9.3 billion yen higher than the previous estimate. Yaskawa Electric's motors and industrial robots are enjoying strong sales momentum as many companies are pushing to modernize their auto and semiconductor factories in the wake of the COVID-19 pandemic. Orders in the most recent quarter, a leading indicator of performance, hit a record high.

Yaskawa Electric's two core businesses are "servo motors" used to drive high-speed operations such as machine tools and semiconductor manufacturing equipment, and industrial robots used for painting processes and assembly in factories. These products are used in production equipment such as automobiles and semiconductors. From March to May, Yaskawa Electric's orders increased by 47% year-on-year to nearly 140 billion yen, surpassing the previous record for a single quarter set in March to May 2018. An increase of 20% from December 2020 to February 2021. Orders have increased for two consecutive quarters. In addition to the resumption of investment in vehicles and other equipment, which had been suspended due to the Sino-U.S. friction and the COVID-19 pandemic, Yaskawa Electric has also increased production facilities for cutting-edge technologies such as pure electric vehicles (EVs) and 5G, a high-speed communication standard.

By region, orders from China continued to be strong with a year-on-year increase of 57%. The Americas and Europe grew by 72% and 59%, respectively. In terms of business types, the "motion control business" centered on motors grew by 70%, and the robotics business grew by 51%.