Net sales of $76.3 million for the first quarter of fiscal 2010 were 49% lower than net sales of $149.9 million for the prior year first quarter.

Net loss of $12.1 million ($1.12 loss per diluted share) for the first quarter of fiscal 2010 compared to net income of $10.9 million ($0.98 per diluted share) for the first quarter of fiscal 2009.

Fiscal 2010 results include $4.8 million of restructuring costs, primarily as a result of the closure of our fork manufacturing facility in France.

Based on cash flows from operations we were able to pay down outstanding debt by $22 million during the quarter ended April 30, 2009.

Income tax expense during fiscal 2010 is a result of taxes due in countries where we are generating income. We are currently unable to realize a tax benefit in several European countries where we have incurred losses.

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

Quarter ended April 30,

Net sales

Gross profit

Gross profit %

SG&A

European restructuring costs

Operating income (loss)

Interest expense, net

Income (loss) before taxes

Provision for income taxes

Effective tax rate

Net income (loss)

Diluted earnings (loss) per share

Consolidated net sales decreased 44% during the first quarter of fiscal 2010, excluding the impact of foreign currency changes, as a result of the decline in global economic conditions and a weak global lift truck market. Global lift truck shipments were down 45% compared to the prior year. Details of the change in net sales compared to the prior year first quarter follow (in thousands):

Revenue decrease

Foreign currency changes

Total

The consolidated gross profit percentage decreased primarily as a result of unabsorbed fixed and variable costs and inventory writedowns in Europe.

During fiscal 2010, we incurred restructuring costs of $4.8 million, primarily as a result of the closure of our fork facility in France.

Selling and administrative expenses decreased 15%, excluding foreign currency changes, due to a reduction in personnel, consulting and other general costs.

The provision for income taxes in the first quarter of fiscal 2010 is primarily related to an increase in valuation allowances for pre-tax losses in Europe that are not deductible in the foreseeable future.

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.

North America

Europe

Asia Pacific

China

Global

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

North America

Europe

Asia Pacific

China

Global

Global lift truck shipments are at their lowest levels since the early 1980’s. The uncertainty around the depth and duration of this recession makes it very difficult to estimate the effect on the global lift truck market in the future. However we are anticipating that the decline in global demand for lift trucks will continue through the remainder of fiscal 2010 and into 2011.

Summary financial results are outlined below (in thousands):

Quarter ended April 30,

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Loss (gain) on disposition of assets,net

Amortization

Operating income

Net sales decreased 44%, excluding the impact of currency changes, primarily due to lower sales volumes as a result of the general economic downturn and a weak lift truck market. Details of the change in net sales over the prior year quarter follow (in thousands):

Revenue decrease

Foreign currency changes

Total

The gross profit percentage was lower than the prior year first quarter due to lower sales volumes which resulted in unabsorbed fixed and variable costs. Most facilities were and are currently operating under reduced work schedules in North America.

The decrease in selling and administrative costs was due to a reduction in personnel, consulting and other general costs, which were partially offset by higher warranty costs.

Summary financial results are outlined below (in thousands):

Quarter ended April 30,

Net sales

Transfers between areas

Net sales and transfers

Gross profit (loss)

Gross profit %

SG&A

Loss (gain) on disposition of assets, net

Amortization

Restructuring costs

Operating loss

Net sales decreased 49%, excluding the impact of currency changes, due to lower sales volumes as a result of general economic conditions and a weak lift truck market. Details of the change in net sales over the prior year quarter follow (in thousands):

Revenue decrease

Foreign currency changes

Total

The negative gross margin of 9% is the result of unabsorbed fixed and variable costs. This is due to significantly lower sales volumes. In addition, we recorded inventory write downs of approximately $1 million to reflect losses we expect to incur on certain customer orders which will be shipped in subsequent quarters.

Excluding the impact of currency changes, selling and administrative expenses decreased 17% in Europe due to lower personnel costs as result of headcount reductions made during our European restructuring activities.

Restructuring costs incurred during fiscal 2010 were primarily a result of the closure of our fork manufacturing facility in France. These costs include employee wage and benefit costs of $3.3 million, fixed asset write downs of $912,000 and legal and other restructuring costs of $532,000.

In May 2009 we initiated discussions with the local works council at our facility in Almere, The Netherlands regarding our intention to cease production operations. Our current plans are to continue to maintain sales and certain administrative functions and our European Parts Depot in The Netherlands and shift production capacity to other Cascade facilities. We intend to continue to provide a full-range of products to our European customers. We estimate the costs for the Almere restructuring will be in the range of $8-10 million and anticipate these costs will be incurred by the end of fiscal 2010.

Summary financial results are outlined below (in thousands):

Quarter ended April 30,

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Gain on disposition of assets, net

Operating income

Net sales decreased 32%, excluding the impact of currency changes, due to lower sales volumes as a result of the general economic downturn and a weak lift truck market. Details of the change in net sales over the prior year quarter follow (in thousands):

Revenue decrease

Foreign currency changes

Total

The gross profit percentage in Asia Pacific was lower than the prior year due to lower sales volumes and fluctuations in foreign currency rates.

Selling and administrative costs decreased 17% in the current year, excluding the impact of currency changes, due to lower personnel, warranty and other general costs.

Summary financial results are outlined below (in thousands):

Quarter ended April 30,

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Loss (gain) on disposition of assets, net

Operating income

Net sales decreased 45%, excluding currency changes, due to lower sales volumes as a result of the general economic downturn and a weak lift truck market. Details of the change in net sales over the prior year quarter follow (in thousands):

Revenue decrease

Foreign currency changes

Total

Gross margin percentages in China increased due to product mix, price increases implemented in the prior year and lower intercompany transfers, which carry lower gross margins.

Selling and administrative costs decreased 11%, excluding currency changes, due to lower personnel and other general costs.

On June 2, 2009, our Board of Directors declared a quarterly dividend of $0.05 per share, payable on July 16, 2009 to shareholders of record as of July 1, 2009.

Our common stock will be traded on the New York Stock Exchange under the ticker symbol “CASC”, effective June 12, 2009.

Net sales

Cost of goods sold

Gross profit

Selling and administrative expenses

Loss on disposition of assets, net

Amortization

European restructuring costs

Operating income (loss)

Interest expense

Interest income

Foreign currency loss, net

Income (loss) before provision for income taxes

Provision for income taxes

Net income (loss)

Basic earnings (loss) per share

Diluted earnings (loss) per share

Basic weighted average shares outstanding

Diluted weighted average shares outstanding

Current assets:

Cash and cash equivalents

Accounts receivable, less allowance for doubtful accounts of $1,503 and $1,441

Inventories

Deferred income taxes

Prepaid expenses and other

Total current assets

Property, plant and equipment, net

Goodwill

Deferred income taxes

Intangible assets, net

Other assets

Total assets

Current liabilities:

Notes payable to banks

Current portion of long-term debt

Accounts payable

Accrued payroll and payroll taxes

Other accrued expenses

Total current liabilities

Long-term debt, net of current portion

Accrued environmental expenses

Deferred income taxes

Employee benefit obligations

Other liabilities

Total liabilities

Shareholders’ equity:

Common stock, $.50 par value, 40,000 authorized shares;
10,852 shares issued and outstanding

Additional paid-in capital

Retained earnings

Accumulated other comprehensive income

Total shareholders’ equity

Total liabilities and shareholders’ equity

Cash flows from operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Fixed asset write off due to restructuring

Depreciation

Amortization

Share-based compensation

Deferred income taxes

Loss on disposition of assets, net

Changes in operating assets and liabilities:

Accounts receivable

Inventories

Prepaid expenses and other

Accounts payable and accrued expenses

Income taxes payable and receivable

Other assets and liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Capital expenditures

Proceeds from disposition of assets

Net cash used in investing activities

Cash flows from financing activities:

Payments on long-term debt

Proceeds from long-term debt

Notes payable to banks, net

Common stock issued under share-based compensation plans

Common stock repurchased

Net cash used in financing activities

Effect of exchange rate changes

Change in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period