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CASCADE CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER ENDED JANUARY 31, 2008

Cascade Corporation (NYSE: CAE) today reported its financial results for the fourth quarter ended January 31, 2008.

Overview

·Net sales of $136.2 million for the fourth quarter of fiscal 2008 were 15% higher than net sales of $118.9 million for the prior year fourth quarter.

·Net income of $8.8 million ($0.74 per diluted share) for the fourth quarter of fiscal 2008 was 14% lower than net income of $10.2 million ($0.80 per diluted share) for the fourth quarter of fiscal 2007.

Fourth Quarter Fiscal 2008 Summary

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



· Consolidated net sales increased 9%, net of acquisitions and currency changes, during the fourth quarter of fiscal 2008 due primarily to higher levels of business activity in China, Asia Pacific and Europe. Details of the net sales increase over the prior year fourth quarter follow (in millions):


· Selling and administrative expenses increased 4%, excluding currency charges and acquisitions, due to selling, personnel, share-based compensation and other general costs.

· During fiscal 2008, net interest expense increased $650,000 compared to the prior year because of additional borrowings to fund various initiatives including our share repurchase program and acquisitions.

· Other expense of $412,000 in fiscal 2008 relates to foreign currency losses, primarily related to fluctuations in the exchange rates for the Canadian dollar and Euro. We realized foreign currency gains in the prior year.

· The effective tax rate increased 31% in the fourth quarter of fiscal 2008 from 29% in the prior year. The increase is primarily attributable to an increase in the valuation allowance related to foreign net operating losses offset in part by benefits from foreign operations and foreign tax credits. The prior year rate reflected the benefit of a reduction in the valuation allowance related to foreign tax credits and reduced tax rates.

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 directly with the demand for our products.



		Fourth Quarter
North America		(9%)
Europe		20%
Asia Pacific		9%
China		43%


· The North American market in fiscal 2009 is expected to be down 5-10% from business levels in fiscal 2008.
· Europe’s lift truck industry is expected to continue to grow, but at a lower rate for fiscal 2009.
· The market in Asia Pacific is expected to continue to grow at moderate levels through fiscal 2009.
· The market in China is expected to continue strong growth, but at more moderate levels through fiscal 2009.

North America Summary

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



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



· The gross profit percentage of 33% was 1% lower than the prior year fourth quarter due to higher material costs and changes in product mix.

· The increase in selling and administrative and amortization costs was due to our recent acquisitions and higher personnel and share-based compensation costs during fiscal 2008.

Europe Summary

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



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



· The increase in sales in Europe can be primarily attributed to higher shipment volumes as a result of a strong European lift truck market.

· The gross profit percentage in Europe was 3% lower compared to the prior year. The lower gross profit was a result of increased material costs, manufacturing inefficiencies and increased personnel and freight expenses.

· Excluding the impact of currency changes, selling and administrative expenses increased 5% in Europe due to higher personnel and selling costs associated with increased sales volumes.

Asia Pacific Summary

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



· All locations throughout the Asia Pacific region contributed to the sales increase as a result of higher shipment volumes. Details of the net sales increase over the prior year quarter follow (in millions):


· The gross profit percentage in Asia Pacific decreased 1% due to a change in product mix, which was partially offset by sourcing of lower cost product from China.

· Selling and administrative costs increased 3% in the current year, excluding the impact of currency changes, due to selling and general cost increases in the current year.

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 and our recent expansion in China which enabled us to produce a larger volume of products. Details of the increase over the prior year third quarter follow (in millions):



· Transfers between areas increased as our expanded operations have provided us with the ability to ship products to other regions, primarily Europe and Asia Pacific.

· Gross margin percentages in China decreased to 32% from 34% in the prior year. This change is due to increased material costs and changes in product mix.

· Selling and administrative costs increased 7% excluding currency changes. This increase is due to additional costs to support our expanded Chinese operations.

Other Matters:

· On April 1, 2008, our Board of Directors declared a quarterly dividend of $0.18 per share, payable on May 15, 2008 to shareholders of record as of April 30, 2008.

Fiscal Year Ended January 31, 2008 Summary

· Results and comments for the fiscal year ending January 31, 2008 are as follows (in thousands, except earnings per share):



· Consolidated revenue of $558.1 million in fiscal 2008 was 17% higher than the prior year. Record levels of net sales in the current year were primarily a result of the strength of lift truck markets in Europe, China and Asia Pacific, acquisitions in North America and our capital expansion plan in China. Details of the revenue increase follow (in millions):



· During fiscal 2008 we settled an insurance litigation matter which resulted in a $16 million increase in operating income and a $10 million increase in net income ($0.81 per diluted share).

· SG&A expense of $89.4 million in fiscal 2008 was 11% higher than expenses of $80.7 million in the prior year. Generally, the higher level of SG&A expense reflects the impact of acquisitions, increased business activity and higher share-based compensation costs. Regional details of the increase in SG&A expense follows (in millions):



· Higher amortization costs in fiscal 2008 relate to intangible assets from our acquisitions.

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 and construction equipment, performance of our manufacturing facilities and the cyclical nature of the materials handling and construction equipment industries. 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 3, 2008 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) 218-4007, International callers can access the call by dialing (303) 262-2130. 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 11110027#, or internationally, by dialing (303) 590-3000 and entering passcode 11110027#.

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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