Cascade Announces Earnings for the Second Quarter
7 September 2000
Cascade Corporation Announces Increased Earnings for the Second Quarter
PORTLAND, Ore.--Sept. 7, 2000--Robert C. Warren, Jr., President and Chief Executive Officer of Cascade Corporation, reported that second quarter earnings increased 3.6% over the 1999 second quarter.Net income for the quarter was $4,604,000 ($.38 per share), compared to $4,442,000 ($.35 per share) reported for the 1999 second quarter. Consolidated net sales were $85,269,000, reflecting a gain of 9.7% over the $77,709,000 of net sales posted in the prior year period.
Consolidated net sales for the first six months of 2000 totaled $172,000,000, an increase of 10% over comparable net sales of $156,300,000 recorded in the first six months of 1999, after adjusting for the sale of the Industrial Tire Division in first quarter of 1999.
Reported net income for the first six months of 2000 was $9,800,000 ($.81 per share) compared to $8,600,000 ($.68 per share) in the first six months of 1999. Earnings for the first six months of 2000 include after tax charges of $1,100,000 ($.09 per share) related to restructuring activities in Europe and Australia, primarily recorded in the second quarter, and $750,000 ($.06 per share) for bad debt expense, recorded in the first quarter, related to a receivable from a major OEM customer which declared bankruptcy. Earnings for the first six months of 1999 include a $1,080,000 after-tax loss ($.09 per share) from the sale of the Industrial Tire Division.
Over the past six months the Company has undertaken initiatives to restructure operations in both Europe and Australia. Restructuring costs incurred in the first six months of 2000 totaled $1,600,000 and consisted primarily of inventory and equipment writedowns and employee termination benefits. The restructuring activities are still in process and will continue through the end of 2000.
Warren attributed 2000 sales growth to strong North American lift truck industry bookings and shipments which continue to exceed industry expectations, growing 21% and 10% respectively, in the second quarter of 2000 as compared with the prior year period. The pace of growth has slowed compared to the 33% and 12% respective growth rates in the first quarter of 2000. Warren added that North America is producing nearly two thirds of the Company's volume.
Warren also reported that the efforts of the Special Committee of Independent Directors, which was appointed on March 9, 2000 to consider options to increase shareholder value, are continuing.
Cascade Corporation & Subsidiary Companies
(in thousands except per share data)
INCOME SUMMARY Six Months Ended July 31,
-------------- 2000 1999
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Net Sales $171,989 $167,209
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Operating Expenses:
Cost of Goods Sold 109,507 108,868
Depreciation and Amortization 9,168 10,028
Selling and Administrative Expenses 33,511 30,858
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152,186 149,754
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Operating Income 19,803 17,455
Interest Income (696) (529)
Interest Expense 4,116 4,661
Other Expense, net 743 201
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Income Before Income Taxes 15,640 13,122
Income Taxes 5,865 4,570
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Net Income $ 9,775 $ 8,552
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Basic Earnings Per Share $ 0.85 $ 0.73
Diluted Earnings Per Share $ 0.81 $ 0.68
Diluted Weighted Average Shares
Outstanding 12,114,375 12,577,255
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CONDENSED BALANCE SHEET AS OF JULY 31, 2000
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Assets Liabilities and Shareholders' Equity
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Current Assets:
Cash $15,943 Current Liabilities $ 50,548
Receivables 56,489 Long-Term Liabilities:
Inventories 42,879 Long-Term Debt 101,271
Other Current Other Long-Term
Assets 5,938 Liabilities 14,798
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Total Current
Assets 121,249 Total Liabilities 166,617
Property, Plant & -------
Equipment, Net 80,787 Exchangeable Preferred Stock
Goodwill and Other and Minority Interest 11,374
Assets, Net 92,544 Shareholders' Equity 116,589
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Total Liabilities &
Total Assets $294,580 Shareholders' Equity $294,580
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