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CASCADE CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED OCTOBER 31, 2007

Cascade Corporation (NYSE: CAE) today reported its financial results for the third quarter ended October 31, 2007.

Overview

·Net sales of $143.1 million for the third quarter of fiscal 2008 were 17% higher than net sales of $122.8 million for the prior year third quarter.

·Net income of $12.4 million ($1.00 per diluted share) for the third quarter of fiscal 2008 was 1% higher than net income of $12.3 million ($0.94 per diluted share) for the third quarter of fiscal 2007.

Third Quarter Fiscal 2008 Summary

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


·Excluding our acquisitions and the impact of foreign currency changes, consolidated net sales increased 9% during the third quarter of fiscal 2008. This increase was primarily the result of higher levels of business activity in Europe, Asia Pacific and China. Details of the net sales increase over the prior year third quarter follow (in millions):



·The majority of the increase in SG&A was attributable to changes in foreign currencies, additional costs because of acquisitions in the fourth quarter of fiscal 2007 and the second quarter of fiscal 2008, higher selling and personnel costs and costs to support our expanded operations in China.

·The effective tax rate decreased 2% in the third quarter of fiscal 2008 from 37% in the prior year. The decrease is primarily related to lower state taxes and changes in income between jurisdictions with differing tax rates. These decreases were partially offset by additional valuation allowances from pre-tax losses in Europe.

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*
North America		(13%)
Europe		20%
Asia Pacific		13%
China		20%

*Represents calendar year data

·The lift truck market outlook is for shipments to follow current trends through the remainder of the year.

North America Summary

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



·Excluding sales related to our acquisitions and currency changes, North America’s net sales were flat. Details of the increase over the prior year quarter follow (in millions):



·The gross profit percentage of 34% was 2% lower than the prior year third 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 consulting 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 a strong European lift truck market.

·The gross profit percentage in Europe was consistent compared to the prior year. The benefits of fixed cost absorption due to higher sales and production levels were offset by increases in material costs and higher freight and personnel expenses.

·Excluding the impact of currency changes, selling and administrative expenses increased 7% 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. Details of the net sales increase over the prior year quarter follow (in millions):



·The gross profit percentage in Asia Pacific increased 1% due to sourcing of lower cost products from China.

·Selling and administrative costs decreased 5% in the current year, excluding the impact of currency changes, due to personnel and general cost decreases 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 plan 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):



·Gross margin percentages in China decreased to 30% from 34% in the prior year. This decrease is primarily the result of increased intercompany sales, changes in product mix and higher material costs.

·Selling and administrative costs increased 33% excluding currency changes. This increase is due to additional costs to support our expanded Chinese operations.

Other Matters:

·On September 5, 2006, our Board of Directors authorized a share repurchase program of up to $80 million over a two-year period. We completed this share repurchase program in October 2007. During the program, we purchased a total of 1,448,000 shares of stock at an average price per share of $55.24.

·On September 20, 2007, our Board of Directors authorized a new share repurchase program of up to $50 million over a two-year period. Repurchases will be made based on market conditions, relevant securities laws and other factors. During the third quarter of fiscal 2008 we did not repurchase any shares of common stock under this new program. As of December 4, 2007, we had repurchased 303,000 shares for $18.0 million.

·On November 26, 2007, our Board of Directors declared a quarterly dividend of $0.18 per share, payable on January 9, 2008 to shareholders of record as of December 26, 2007.

·During the first quarter of fiscal 2008, we settled an insurance litigation matter for $16 million. This recovery, net of tax, increased our nine month diluted earnings per share by $0.80.

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 6, 2007 at 2:00 pm PST. Richard S. Anderson, 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) 262-2131. 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 11102140#, or internationally, by dialing (303) 590-3000 and entering passcode 11102140#.

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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