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CASCADE CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED OCTOBER 31, 2008

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

Overview

·Net sales of $139.1 million for the third quarter of fiscal 2009 were 3% lower than net sales of $143.1 million for the prior year third quarter.

·Net income of $10.4 million ($0.94 per diluted share) for the third quarter of fiscal 2009 was 16% lower than net income of $12.4 million ($1.00 per diluted share) for the third quarter of fiscal 2008.

Third Quarter Fiscal 2009 Summary

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



·Consolidated net sales decreased 3% during the third quarter of fiscal 2009, excluding the impact of foreign currency changes. This decrease was primarily the result of lower sales volumes in North America, Europe and China. Details of the change in net sales compared to the prior year third quarter follow (in thousands):



·The consolidated gross profit percentage decreased 3% primarily as a result of material price increases and lower sales volumes.

·Selling and administrative expenses decreased 7%, excluding foreign currency changes, due to a reduction in personnel, consulting, selling and other general costs.

·Foreign currency losses increased $1 million due to significant changes in foreign currency rates against the U.S. dollar for the Euro, British Pound, Korean Won and Canadian Dollar.

·The effective tax rate decreased to 30% for the third quarter of fiscal 2009 from 35% for fiscal 2008. The current quarter rate reflects the benefit of an income tax refund received in China related to a non-recurring tax exemption.

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.



		Third Quarter Shipments
North America		(12%)
Europe		11%
Asia Pacific		9%
China		(1%)


·Percentage changes in lift truck industry orders, by region, for the month of October, as compared to the prior year are outlined below:



		October Orders
North America		(39%)
Europe		(30%)
Asia Pacific		(29%)
China		(14%)

·Based on our review of industry data and general economic conditions, we believe the global lift truck market and our sales will be down as much as 30% for the remainder of fiscal 2009 and in fiscal 2010.

North America Summary

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



·Net sales decreased 5%, excluding the impact of currency changes, primarily due to the economic slowdown in North America. Details of the change in net sales over the prior year quarter follow (in thousands):



·The gross profit percentage was 3% lower than the prior year third quarter due to higher material costs, lower sales volumes, changes in product mix and new product introduction costs. The current quarter gross profit percentage is consistent with the first two quarters of fiscal 2009.

·The decrease in selling and administrative costs was due to a reduction in personnel, consulting and other general costs.

Europe Summary

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



·Net sales decreased 3%, excluding the impact of currency changes, due to weakening economic conditions in Europe. Details of the change in net sales over the prior year quarter follow (in thousands):



·The gross profit percentage was consistent with the prior year third quarter. We mitigated the impact of material cost increases with sales price increases and manufacturing cost reductions.

·Excluding the impact of currency changes, selling and administrative expenses decreased 5% in Europe due to lower personnel, selling and other general costs.

·Quarterly operating results for the current year include $1.3 million of costs related to our European reorganization. The majority of these costs relate to the downsizing of our European workforce in Germany.

Asia Pacific Summary

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



·Net sales increased 14%, excluding the impact of currency changes, due to strong business activity in Korea and Australia. Details of the change in net sales over the prior year quarter follow (in thousands):



·The gross profit percentage in Asia Pacific was 5% lower than the prior year due to material cost increases, fluctuations in foreign currency rates and increased sales of lower margin products.

·Selling and administrative costs increased 6% in the current year, excluding the impact of currency changes, due to higher personnel, marketing and other general costs.

China Summary

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



·Net sales decreased 15%, excluding currency changes, due to a slowdown in the Chinese economy. Details of the change in net sales over the prior year quarter follow (in thousands):



Other Matters:

·On December 2, 2008, our Board of Directors declared a quarterly dividend of $0.20 per share, payable on January 15, 2009 to shareholders of record as of December 31, 2008.

·During the first quarter of the prior year we settled an insurance litigation matter which resulted in a $16 million increase in operating income and a $10 million increase in net income ($0.80 per diluted share).

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, December 4, 2008 at 2:00 pm PST. 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) 218-0713, International callers can access the call by dialing (303) 262-2131. 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 11122097, or internationally, by dialing (303) 590-3000 and entering passcode 11122097.

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
Joseph G. Pointer
Chief Financial Officer
Cascade Corporation
Phone (503) 669-6300

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