Cascade Corp. Announces Operating Results for its Second Quarter
PORTLAND, Ore.--Sept. 6, 2001--Robert C. Warren, Jr., President and Chief Executive Officer of Cascade Corporation reported net income for the second quarter ended July 31, 2001 of $4.1 million ($.34 per share), compared to net income of $4.6 million ($.38 per share) in the second quarter of the prior year. Consolidated net sales were $75.7 million, a 13.7% decrease, when compared to consolidated net sales of $87.8 million posted in the prior year first quarter.Net income for the six months ended July 31, 2001 was $9.1 million ($.74 per share) compared to $9.8 million ($.81 per share) in the first six months of the prior year. Consolidated net sales were $156.2 million, an 11.8% decrease, when compared to consolidated net sales of $177 million in the first six months of the prior year.
Warren attributed the decrease in the Company's net sales to decreases in both order and shipment rates in the lift truck industry, particularly in North America, in the first six months of the year. North American lift truck order and shipment rates have decreased 44% and 13%, respectively, in the first six months of the current year in comparison with the first six months of the prior year. The Company's sales in North America for the second quarter and six month period ended July 31, 2001 decreased 14.1% and 11.4%, respectively.
Warren added that while the Company has found that changes in its net sales do not correspond directly to percentage changes in lift truck industry order rates and shipments, the industry statistics do provide a strong indication of market activity. Based on industry statistics and Company order rates to date, the Company expects net sales through the remainder of fiscal 2002 (year ending January 31, 2002) to trail the prior year. The Company also expects net income for the remainder of fiscal 2002 to be lower than fiscal 2001 net income for the same period, after excluding the impact of restructuring costs, special board committee costs and environmental charges incurred in fiscal 2001.
Reductions in selling and administrative costs partially offset the Company's lower sales levels, resulting in decreases in net income for the second quarter and first six months of 10% and 7.2%, respectively, compared to the prior year. In the six months ended July 31, 2001, the Company's selling and administrative expenses decreased 17.8% as compared to the first six months of the prior year. The decreased level of selling and administrative expenses reflects the benefits of the Company's restructuring efforts in Europe and Australia that occurred throughout the prior year and continuing efforts to reduce current year expenses to reflect the reduced sales activity.
The Company ceased paying dividends as a condition of the merger agreement entered into with the Lift Group in October, 2000. The Board of Directors has not declared dividends since termination of the merger agreement in April of this year.
Cascade Corporation, headquartered in Portland, Oregon, is a leading international manufacturer of lift truck attachments, forks and accessories. Additional information on Cascade is available on its web site, www.cascorp.com.
Under the "safe harbor provision" of the Private Securities Litigation Act, Cascade Corporation is required to advise you that this news release contains "forward-looking statements" based on assumptions as to future sales and earnings, which in turn are dependant on economic conditions in general including interest rates, and on competitive factors in, and on the cyclical nature of the Materials Handling Industry.
Cascade Corporation
(In thousands except share and per share data)
INCOME STATEMENT
(Unaudited)
Three Months Ended July 31, Six Months Ended July 31,
2001 2000 2001 2000
Net sales $75,715 $87,772 $156,192 $177,037
Cost and expenses:
Cost of goods
sold 52,274 59,250 107,048 119,362
Amortization 1,098 1,415 2,189 2,492
Selling and
administrative
expenses 14,240 17,782 29,095 35,380
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67,612 78,447 138,332 157,234
Operating income 8,103 9,325 17,860 19,803
Interest expense 1,673 2,161 3,460 4,116
Interest income (359) (306) (532) (696)
Other expense, net 109 104 306 743
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Income before
income taxes 6,680 7,366 14,626 15,640
Income taxes 2,537 2,762 5,558 5,865
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Net income $ 4,143 $ 4,604 $ 9,068 $ 9,775
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Basic earnings
per share $ 0.36 $ 0.40 $ 0.79 $ 0.85
Diluted earnings
per share $ 0.34 $ 0.38 $ 0.74 $ 0.81
Diluted weighted
average shares
outstanding 12,242,828 12,134,835 12,299,283 12,114,375
CONDENSED BALANCE SHEET
Assets July 31, 2001 January 31, 2001
------ (Unaudited)
Current assets:
Cash $14,502 $12,418
Receivables 52,923 53,846
Inventories 38,053 40,278
Other current assets 5,667 7,397
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Total current assets 111,145 113,939
Property, plant and
equipment, net 72,127 77,235
Goodwill and other
assets, net 87,233 91,446
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Total assets $270,505 $282,620
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Liabilities and Shareholders' Equity
Current liabilities $ 42,555 $ 49,192
Long-term debt 78,079 87,513
Other long-term liabilities 17,610 18,038
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Total liabilities 138,244 154,743
Exchangeable preferred stock
and minority interest 11,374 11,374
Shareholders' equity 120,887 116,503
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Total liabilities and
shareholders' equity $270,505 $282,620
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