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CASCADE CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED APRIL 30, 2007

Cascade Corporation (NYSE: CAE) today reported its financial results for the first quarter ended April 30, 2007.

Overview

·Net sales of $135.5 million for the first quarter of fiscal 2008 were 15% higher than net sales of $117.8 million for the prior year quarter.

·Net income of $23.8 million ($1.90 per diluted share) for the first quarter of fiscal 2008 was 116% higher than net income of $11.0 million ($0.84 per diluted share) for the first quarter of fiscal 2007. The increase in net income reflects the overall strength of our global operations and the settlement of an insurance litigation claim. Excluding the effect of the insurance litigation recovery, net income was $1.07 per diluted share (see separate pro forma calculation).

First Quarter Fiscal 2008 Summary

·Summary financial results are outlined below (in thousands, except earnings per share):

·Higher sales were primarily the result of higher levels of business activity in Europe, Asia Pacific and China. Details of the sales increase over the prior year first quarter follow (in millions):

·The consolidated gross profit percentage of 32% was 1% higher than in the prior year. In the current year we continue to see the benefit of our China expansion both in terms of lower production costs and sourcing of certain raw materials and components from within China.

·The majority of the increase in SG&A was attributable to changes in foreign currency and additional costs because of the acquisition of Pacific Services and Manufacturing, Inc. (PSM) in the fourth quarter of fiscal 2007.

·The effective tax rate of 35% is consistent with the first quarter of the prior year.

Market Conditions

·Percentage changes in lift truck industry shipments, by region, as compared to the prior year are outlined below. Although lift truck unit shipments are an indicator of the general health of the industry, they do not necessarily correlate with the demand for our products.



		First Quarter*
North America		(8%)
Europe		23%
Asia Pacific, excluding China		2%
China		23%


*Represents calendar year data

·The lift truck market outlook is for shipment levels to remain at current levels through the remainder of the year.

North America Summary

·Summary financial results are outlined below (in thousands):



·Excluding sales related to our acquisition of PSM, North America net sales decreased 1%. We do not believe the current sales levels are an indication of any loss of our market share in North America, but a reflection of the flattening of activity in the North American lift truck industry. Details of the revenue increase over the prior year quarter follow (in millions):



·The gross profit percentage of 39% was the same as the prior year first quarter. We have been able to offset the effect of general and material cost increases through cost reduction activities or sales price increases.

·Selling and administrative costs increased due to the PSM acquisition and general cost increases.

·Higher amortization costs in fiscal 2008 related to amortization of intangible assets related to our PSM acquisition.

Europe Summary

·Summary of financial results are outlined below (in thousands):




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



·The increase in sales in Europe can be primarily attributed to a strong European lift truck market.

·The gross profit percentage in Europe was higher compared to the prior year. In the current year, we received the benefit of better overhead cost absorption with increased sales and improved manufacturing efficiencies.

·Excluding the impact of currency changes, selling and administrative expenses decreased 3% in Europe, primarily due to lower warranty costs.

·The gain on disposition of assets in the first quarter of the prior year primarily relates to the sale of our manufacturing facility in Hoorn, The Netherlands.

Asia Pacific Summary

·Summary financial results are outlined below (in thousands):



·The sales increase in the Asia-Pacific region was primarily due to strong sales growth in Korea and Japan. Details of the revenue increase over the prior year quarter follow (in millions):



·The current year gross profit percentage was 26%, an increase of 1% over the prior year. The sourcing of lower cost product from China is the primary reason for the increase.

·Selling and administrative costs decreased 2% in the current year, excluding the impact of currency changes, due to lower general costs in fiscal 2008.

China Summary

·Summary financial results are outlined below (in thousands):

·The net sales increase in China is due to a very strong Chinese lift truck market. Details of the revenue increase over the prior year quarter follow (in millions):



·Gross margin percentages in China increased to 44% from 39%. This increase reflects the benefit of sourcing certain raw materials and components from within China and lower production costs due to process improvements.

·Selling and administrative costs increased 35% excluding currency changes. This increase is due to additional costs to support the expansion of our Chinese operations.

Dividend, Share Repurchase and Other Matters:

·On June 5, 2007, our Board of Directors declared a quarterly dividend of $0.18 per share, payable on July 19, 2007 to shareholders of record as of July 3, 2007.

·On September 5, 2006, our Board of Directors authorized a share repurchase program of up to $80 million over a two year period. As of April 30, 2007, we have repurchased 1.1 million shares of common stock for $61 million.

Pro Forma Financial Information:

The calculation of diluted earnings per share excluding the insurance recovery is as follows (in thousands, except per share amount):



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, interest rates, 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, June 7, 2007 at 2:00 pm PDT. Robert C. Warren, Jr., President and Chief Executive 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) 262-2211. 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 passcode 11090718#, or internationally, by dialing (303) 590-3000 and entering passcode 11090719#.

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

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