Cascade Corporation Announces Financial Results for the Fourth Quarter and Year Ended January 31, 2013

  Cascade Corporation Announces Financial Results for the Fourth Quarter and
  Year Ended January 31, 2013

Business Wire

PORTLAND, Ore. -- March 25, 2013

Cascade Corporation (NYSE: CASC) today reported its financial results for the
fourth quarter ended January 31, 2013.

Fourth Quarter Fiscal 2013 Summary

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

                                                      
                Three Months                                            %
                Ended January       2013              2012              Change
                31
                Net sales           $ 123,570         $ 125,924         (2  %)
                Gross profit          34,926            36,420          (4  %)
                Gross profit          28      %         29      %
                %
                SG&A                  22,551            20,759          9   %
                Environmental         4,000             -               -
                Australia
                flood                 -                 (2,871  )       -
                proceeds, net
                Operating             8,375             18,532          (55 %)
                income
                Operating             7       %         15      %
                income %
                Interest
                expense               (36     )         65              -
                (income), net
                Foreign
                currency              55                16              -
                loss, net
                Income before         8,356             18,451          (55 %)
                taxes
                Provision for         2,642             5,255           (50 %)
                income taxes
                Effective tax         32      %         28      %
                rate
                Net income          $ 5,714           $ 13,196          (57 %)
                Diluted
                earnings per        $ 0.50            $ 1.16            (57 %)
                share
                                                                        

  *Consolidated net sales during the fourth quarter of fiscal 2013 decreased
    compared to the fourth quarter of fiscal 2012, excluding the impact of
    foreign currency changes, primarily due to lower sales volumes in Europe.
    Details of the net sales decrease over the prior year fourth quarter
    follow (in thousands):

                                                  
                                              2013                 Change %
                Net sales change              $ (2,176 )           (2   %)
                Foreign currency change        (178   )           0    %
                Total                         $ (2,354 )           (2   %)
                                                                        

  *Our consolidated gross profit percentage was slightly lower during the
    fourth quarter of fiscal 2013 compared to fiscal 2012 primarily as a
    result of decreased sales volumes.
  *Selling and administrative expense increased during the fourth quarter of
    fiscal 2013 due to additional costs related to the pending acquisition by
    Toyota Industries Corporation ($0.8 million) and other costs in the
    Americas and China.
  *During the fourth quarter of fiscal 2013, we recorded a $4.0 million
    charge related to the expansion of our existing long-term environmental
    remediation plans at our Fairview, Oregon and Springfield, Ohio locations.
  *Our facility in Australia was significantly damaged by flooding in January
    2011. During the fourth quarter of fiscal 2012, we received net flood
    insurance proceeds of $2.9 million. The after tax impact of the proceeds
    was $2.0 million ($.18 per diluted share).
  *The effective income tax rate was higher primarily due to a larger
    reduction in the valuation allowance on The Netherlands deferred tax
    assets in fiscal 2012.

Market Conditions

  *Percentage changes in lift truck industry shipments and orders, by region,
    as compared to the prior year are outlined below. Although lift truck unit
    data provides an indicator of the general health of the industry and our
    business over a six to twelve month period, they do not necessarily
    correlate directly with the demand for our products on a quarterly basis.

                                               
                                   Shipments                    Orders
                                   Q4 FY13 vs Q4 FY12           Q4 FY13 vs Q4
                                                                FY12
                Americas           (1%)                         5%
                Europe             (8%)                         (12%)
                Asia Pacific       (2%)                         (7%)
                China              (8%)                         6%
                Global             (5%)                         (2%)
                                                                

Fiscal Year Ended January 31, 2013 Summary

  *Summary financial results for the fiscal years ended January 31, 2013 and
    2012 are as follows (in thousands, except earnings per share):

                                                      
                Year Ended          2013              2012              %
                January 31                                              Change
                Net sales           $ 538,408         $ 535,767         -
                Gross profit          162,368           169,287         (4  %)
                Gross profit          30      %         32      %
                %
                SG&A                  90,833            85,009          7   %
                Environmental         4,000             -               -
                Australia
                flood                 -                 (3,137  )       -
                proceeds, net
                Operating             67,535            87,415          (23 %)
                income
                Operating             13      %         16      %
                income %
                Interest              119               542             (78 %)
                expense, net
                Foreign
                currency              312               1,053           (70 %)
                loss, net
                Income before         67,104            85,820          (22 %)
                taxes
                Provision for         20,252            22,774          (11 %)
                income taxes
                Effective tax         30      %         27      %
                rate
                Net income          $ 46,852          $ 63,046          (26 %)
                Diluted
                earnings per        $ 4.10            $ 5.58            (27 %)
                share
                                                                        

  *SG&A expenses in fiscal 2013 were 9% higher, excluding the impact of
    currency changes, primarily due to costs related to the pending
    acquisition by Toyota Industries Corporation ($2.7 million), our new
    subsidiary in Brazil and increased personnel, insurance and consulting
    costs.
  *The effective income tax rate was higher primarily due to a larger
    reduction in the valuation allowance on The Netherlands deferred tax
    assets in fiscal 2012.

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 results expressed or implied by
forward-looking statements in this release or in any other forward-looking
statements made by us, or on our behalf. These factors include among others,
the effects of 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, and any failure to satisfy the conditions
to the completion of our transaction with TICO or otherwise complete the
transaction. 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.

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.

                                                     
CASCADE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited -- in thousands, except per share amounts)
                                                               
                     Three Months Ended January 31       Twelve Months Ended January
                                                         31
                     2013              2012              2013            2012
Net sales            $ 123,570         $ 125,924         $ 538,408       $ 535,767
Cost of goods         88,644          89,504          376,040        366,480 
sold
Gross profit           34,926            36,420            162,368         169,287
                                                                         
Selling and
administrative         22,551            20,759            90,833          85,009
expenses
Environmental          4,000             -                 4,000           -
Australia
flood                 -               (2,871  )        -              (3,137  )
proceeds, net
                                                                         
Operating              8,375             18,532            67,535          87,415
income
Interest
expense                (36     )         65                119             542
(income), net
Foreign
currency loss,        55              16              312            1,053   
net
                                                                         
Income before
provision for          8,356             18,451            67,104          85,820
income taxes
Provision for         2,642           5,255           20,252         22,774  
income taxes
                                                                         
Net income           $ 5,714          $ 13,196         $ 46,852        $ 63,046  
                                                                         
Basic earnings       $ 0.51           $ 1.20           $ 4.22          $ 5.74    
per share
Diluted
earnings per         $ 0.50           $ 1.16           $ 4.10          $ 5.58    
share
                                                                         
Basic weighted
average shares         11,126            11,017            11,099          10,988
outstanding
Diluted
weighted               11,486            11,329            11,419          11,293
average shares
outstanding
Cash dividends       $ .35            $ .25            $ 1.40          $ .90     
per share
                                                                         
                                                                         


CASCADE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
                                                         
                                           January 31,
                                           2013                      2012
                                                                     
ASSETS
Current assets:
Cash and cash equivalents                  $ 46,543                  $ 24,928
Accounts receivable, less allowance
for doubtful accounts of $1,159 and          75,962                    77,752
$1,211
Inventories                                  88,297                    86,660
Deferred income taxes                        5,292                     3,822
Assets available for sale                    -                         7,572
Prepaid expenses and other                  12,814                   11,353
Total current assets                         228,908                   212,087
Property, plant and equipment, net           80,220                    71,439
Goodwill                                     88,906                    88,174
Deferred income taxes                        22,764                    18,964
Other assets                                4,874                    3,895
Total assets                               $ 425,672                 $ 394,559
                                                                     
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable to banks and current         $ -                       $ 689
portion of long-term debt
Accounts payable                             24,582                    28,280
Accrued payroll and payroll taxes            9,171                     9,473
Accrued incentive pay                        1,307                     2,496
Other accrued expenses                      14,991                   15,580
Total current liabilities                    50,051                    56,518
Long-term debt, net of current               3,500                     4,950
portion
Accrued environmental expenses               4,976                     2,279
Deferred income taxes and other tax          9,931                     8,626
liabilities
Employee benefit obligations                 8,087                     8,228
Other liabilities                           2,624                    3,231
Total liabilities                           79,169                   83,832
                                                                     
Commitments and contingencies
                                                                     
Shareholders' equity:
Common stock, $.50 par value, 40,000
authorized shares;
11,199 and 11,088 shares issued and          5,600                     5,544
outstanding
Additional paid-in capital                   18,526                    13,252
Retained earnings                            282,494                   251,280
Accumulated other comprehensive              39,883                    40,651
income
                                                                    
Total shareholders' equity                  346,503                  310,727
Total liabilities and shareholders'        $ 425,672                 $ 394,559
equity
                                                                     
                                                                     

                                                              
CASCADE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in thousands)
                                                                           
                    Three Months Ended                  Twelve Months Ended

                    January 31,                         January 31,
                    2013              2012              2013               2012
Cash flows
from
operating
activities:
Net income          $ 5,714           $ 13,196          $ 46,852           $ 63,046
Adjustments
to reconcile
net income to
net cash
provided by
operating
activities:
Depreciation
and                   2,923             2,474             10,802             9,982
amortization
Share-based           758               570               2,899              2,486
compensation
Deferred              (1,165  )         (472    )         (5,148   )         (1,917   )
income taxes
Tax effect on
share-based           (16     )         (432    )         (1,590   )         (693     )
compensation
Loss (gain)
on
disposition           20                6                 (16      )         (140     )
of assets,
net
Changes in
operating
assets and
liabilities:
Accounts              8,477             6,759             81                 (11,035  )
receivable
Inventories           1,683             (2,758  )         (491     )         (19,661  )
Prepaid
expenses and          2,256             6,628             476                (91      )
other
Accounts
payable and           (2,447  )         (2,497  )         (3,381   )         6,182
accrued
expenses
Income taxes
payable and           (1,297  )         596               (2,596   )         2,684
receivable
Environmental         3,701             (81     )         2,697              (832     )
liability
Other assets
and                  (2,272  )        1,285           586              4,208    
liabilities
Net cash
provided by          18,335          25,274          51,171           54,219   
operating
activities
                                                                           
Cash flows
from
investing
activities:
Capital               (3,027  )         (4,227  )         (12,388  )         (13,417  )
expenditures
Proceeds from
disposition           131               278               287                1,452
of assets
Business             -               (1,450  )        (1,266   )        (1,450   )
acquisitions
Net cash used
in investing         (2,896  )        (5,399  )        (13,367  )        (13,415  )
activities
                                                                           
Cash flows
from
financing
activities:
Cash
dividends             (3,920  )         (2,770  )         (15,638  )         (9,960   )
paid
Payments on
long-term             (14,450 )         (31,146 )         (131,344 )         (108,569 )
debt
Proceeds from
long-term             14,800            14,500            129,500            71,500
debt
Notes payable         -                 (533    )         (98      )         102
to banks, net
Common stock
issued under
share-based           -                 68                842                877
compensation
plans
Tax effect on
share-based          16              432             1,590            693      
compensation
Net cash used
in financing         (3,554  )        (19,449 )        (15,148  )        (45,357  )
activities
                                                                           
Effect of
exchange rate        (590    )        4,707           (1,041   )        4,444    
changes
                                                                           
Change in
cash and cash         11,295            5,133             21,615             (109     )
equivalents
Cash and cash
equivalents          35,248          19,795          24,928           25,037   
at beginning
of period
Cash and cash
equivalents         $ 46,543         $ 24,928         $ 46,543          $ 24,928   
at end of
period

Contact:

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