Cascade Corporation - Cascade Corporation Announces Earnings of $0.63 Per Share for the Fourth Quarter Ended January 31, 2006

ATTACHMENTS

FORKS

ORDER

SUPPORT

ABOUT CASCADE

CONTACT US

INVESTOR RELATIONS

CASCADE CORPORATION ANNOUNCES EARNINGS OF $0.63 PER SHARE FOR THE FOURTH QUARTER ENDED JANUARY 31, 2006

Cascade Corporation (NYSE: CAE) today reported net income for the fourth quarter of fiscal 2006 of $8.3 million, a 62% increase from $5.1 million for the fourth quarter of fiscal 2005. Net sales for the fourth quarter of fiscal 2006 were $108.4 million or 5% greater than the fourth quarter of fiscal 2005.

Fourth Quarter Fiscal 2006 Summary

·Summary financial results for the fourth quarter and results for the comparable quarter of the previous year are outlined below (in thousands, except earnings per share):

·Higher sales in all regions contributed to the 5% increase in total revenues. Revenue growth, excluding currency changes, in North America, Asia Pacific and China was 12%, 13% and 20%, respectively, over the prior year’s fourth quarter. Sales in Europe were down 11%, but the decline was only 2% excluding currency changes.

·Consolidated gross profit percentage of 29% was down from 31% in the comparable quarter of the prior year. Margins were negatively impacted by higher material costs and increased sales of lower margin OEM products.

·The decrease in SG&A was primarily attributable to lower share-based compensation expenses. In the fourth quarter of fiscal 2005 we recorded share-based compensation of $1.6 million using a mark-to-market method based on the market price of our common stock at January 31, 2005. In the current year we adopted the new accounting standard for share-based compensation. The expense under the new standard was $1.0 million in the fourth quarter of fiscal 2006.

·The effective tax rate in the fourth quarter of fiscal 2006 was 21% compared to 42% in the prior year. The decrease is due to several factors including the expected realizability of foreign net operating and capital loss carry forwards and liabilities for employee benefit plans.

Market Conditions

·Lift truck shipments for the fourth quarter and full year are outlined below. Although lift truck shipments are an indicator of the general health of the industry, they do not necessarily correlate directly with the demand for Cascade’s products.

	Q4*	Year-to-date*
North America	(4%)	11%
Europe	2%	3%
Asia Pacific (excluding China)	9%	10%
China	1%	11%
*Represents calendar year data

·We have continued to see increases in the cost of certain parts and components over the past year. The overall increase in material costs in fiscal 2006 was less significant than we experienced in fiscal 2005. We are continuing to aggressively work to mitigate the effect of steel cost increases through a variety of means. We will continue these efforts, although there is no assurance we will be able to mitigate the full impact of all material cost increases.

North America Summary

·Higher shipments and sales in the fourth quarter reflect a strong North American lift truck market for the year, even though industry shipments decreased in the fourth quarter. Details of the revenue increase for the quarter over the prior year quarter follow (in millions):

Europe Summary

·Details of the revenue decrease for the quarter over the prior year quarter follow (in millions):

·The majority of the revenue decline in Europe can be attributed to currency changes in the Euro and British Pound. The remaining revenue decline is due to competitive pressures and disruptions related to the movement of production from a facility in The Netherlands which was closed in fiscal 2006.

·Gross margins declined in the fourth quarter of the current year. Factors contributing to lower gross margins include costs related to the closure of a manufacturing facility in The Netherlands and higher labor and maintenance costs in Germany. During the fourth quarter, cost of goods sold increased $600,000 related to the closure.

·SG&A decreased 12% due to lower marketing and warranty and other miscellaneous cost reductions.

Asia Pacific Summary (excluding China)

·Details of the revenue increase for the quarter over the prior year quarter follow (in millions):

·The decrease in gross profit was due to higher material costs which we were unable to pass on to customers in the region.

·The increase in SG&A was primarily due to higher employee benefit costs.

China Summary

·Details of the revenue increase for the quarter over the prior year quarter follow (in millions):

·The decrease in gross profit margin reflects a more competitive market than we experienced in the prior year.

·The increase in SG&A was primarily due to higher employee benefit costs. We don’t expect selling and administrative costs to continue at this level in fiscal 2007.

Dividend

·On April 11, 2006, our Board of Directors declared a quarterly dividend of $0.15 per share, payable on May 15, 2006, to shareholders of record as of April 27, 2006.

Fiscal Year Ended January 31, 2006 Summary

·Results and comments for the fiscal year ending January 31, 2006 are as follows (in thousands, except earnings per share):

·Consolidated revenue of $450.5 million in fiscal 2006 was 17% higher than consolidated revenue the prior year. Details of the revenue increase follow (in millions):

North America	$ 40.5	11%
Europe	15.0	4%
Asia Pacific	5.6	1%
China	2.6	1%
Foreign currency changes	1.1	-
Total	$ 64.8	17%

·Gross margins were essentially unchanged at 32% for both years. We continue to experience the impact of higher steel prices. We believe we have been able to recover these costs in some, but not in all markets.

·SG&A expense of $77.4 million in fiscal 2006 was 2% higher than expenses of $75.9 million in the prior year. Generally, the higher level of SG&A expense reflects the impact of increased business activity. Regional details of the increase in SG&A expense follows (in millions):

North America	$ 0.5	1%
Europe	(0.7)	(1%)
Asia Pacific	0.9	1%
China	0.6	1%
Foreign currency changes	0.2	-
Total	$ 1.5	2%

·The increase in amortization expense was due to amortization of intangible assets in Italy.

·The effective tax rate for fiscal 2006 decreased to 32% versus 37% the prior year. The decrease is due primarily to the expected realization of foreign capital and net operating loss carryforwards and liabilities related to employee benefit plans.

Forward Looking Statements:

This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that a number of factors could cause our actual results to differ materially from any results indicated in this release or in any other forward-looking statements made by us, or on our behalf. These include among others factors related to general economic conditions, demand for materials handling
products, performance of our manufacturing facilities and the cyclical nature of the materials handling industry. Further, historical information should not be considered an indicator of future performance. Additional considerations and important risk factors are described in our reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission.

Earnings Call Information:

We will discuss our results in a conference call on Thursday, April 13th at 9:00 am PDT. Robert C. Warren, President and Chief Executive Officer, and Richard “Andy” Anderson, Senior Vice President and Chief Financial Officer will host the call. The conference call can be accessed in the U.S. and Canada by dialing (800) 218-8862, International callers can access the call by dialing (303) 262-2137. Participants are encouraged to dial-in 15 minutes prior to the beginning of the call. A replay will be available for 48 hours after the live broadcast and can be accessed by dialing (800) 405-2236 and entering pass-code 11057623#, or internationally, by dialing (303) 590-3000.

The call will be simultaneously webcast and can be accessed on the Investor Relations page of the company’s website, www.cascorp.com. Listeners should go to the website at least 15 minutes early to register, download and install any necessary audio software.

About Cascade Corporation:

Cascade Corporation, headquartered in Fairview, Oregon, is a leading international manufacturer of materials handling products used primarily on lift trucks. Additional information on Cascade is available on its website, www.cascorp.com.

Contact
Richard S. "Andy" Anderson
Senior Vice President and Chief Financial Officer
Cascade Corporation
Phone (503) 669-6300

Home | International | Privacy Policy | Investor Relations | Contact Cascade
My Profile

| My Orders