Net sales of $110.3 million for the fourth quarter of fiscal 2011 were 36% higher than net sales of $80.6 million for the prior year fourth quarter, excluding the impact of foreign currencies.

Net income was $3.7 million ($0.33 per diluted share) for the fourth quarter of fiscal 2011 compared to a net loss of $14.4 million ($1.33 loss per diluted share) for the fourth quarter of fiscal 2010.

During January 2011, our operations in Australia were significantly damaged due to flooding. As a result, we incurred a $5.1 million pre-tax charge from the write down of inventory and fixed assets and other flood related costs. The after tax impact of this charge was $3.6 million ($0.32 per diluted share). During fiscal 2012, we expect to recover from insurance proceeds, a substantial portion of losses from asset write-offs and interruptions to business operations related to the flood.

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

Three Months Ended January 31

Net sales

Gross profit

Gross profit %

SG&A

Australia flood costs

European restructuring costs

Operating income (loss)

Interest expense, net

Foreign currency loss, net

Income (loss) before taxes

Provision for income taxes

Effective tax rate

Net income (loss)

Diluted earnings (loss) per share

Consolidated net sales increased due primarily to higher sales volumes as a result of improving economic conditions and a stronger global lift truck market. Details of the net sales increase over the prior year fourth quarter follow (in thousands):

Net sales change

Foreign currency change

Total

Our consolidated gross profit percentage increased in fiscal 2011, from 23% to 29%, primarily as a result of improved cost absorption due to increased sales volumes and the benefit of cost cutting measures implemented during fiscal 2010.

Cost of goods sold was negatively impacted during fiscal 2011 as a result of $2.2 million of inventory write offs due to flooding in Australia. Cost of goods sold was negatively impacted during fiscal 2010 by inventory write offs of $2.5 million primarily related to our European restructuring activities.

During January 2011, we recorded additional costs of $2.5 million for fixed asset impairments and $0.5 million for other costs as a result of the flooding in Australia.

Fiscal 2011 results include $1.2 million of restructuring costs primarily related to the closure of certain European sales offices and a building write-down in Hagen, Germany. Fiscal 2010 results include $12.1 million of restructuring costs primarily related to shutting down production at our fork facility in Germany.

Fourth quarter of fiscal 2010 included $1.3 million of costs related to increased environmental remediation accruals at our facility in Springfield, Ohio.

The income tax expense in fiscal 2011 and 2010 was primarily a result of taxes due in countries where we generated income. We were also unable to realize a tax benefit in several European countries where we incurred losses in both years.

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.

North America

Europe

Asia Pacific

China

Global

Global lift truck markets are recovering based on order and shipment rates. However, global lift truck market shipment levels are still 21% below fiscal 2008 levels, the peak year for lift truck shipments across the industry. In the event the global economy continues to improve, we would expect strong lift truck shipment levels during fiscal 2012.

Summary financial results are outlined below (in thousands):

Three Months Ended January 31

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Operating income

Net sales increased primarily due to higher sales volumes as a result of improving economic conditions. Details of the change in net sales over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

The gross profit percentage increased 2% due to improved cost absorption as a result of higher sales volumes.

Selling and administrative expense increased during the fourth quarter of fiscal 2011 primarily as a result of higher sales commissions, executive incentive and other personnel costs, as a result of improved financial performance in the current year.

During the fourth quarter of fiscal 2010, we recorded a $1.3 million environmental charge primarily related to our Springfield, Ohio location. This expense was a result of formalizing a revised remediation plan with the Ohio Environmental Protection Agency.

Summary financial results are outlined below (in thousands):

Three Months Ended January 31

Net sales

Transfers between areas

Net sales and transfers

Gross profit (loss)

Gross profit (loss) %

SG&A

European restructuring costs

Operating loss

Net sales increased due to higher sales volumes as a result of a strong lift truck market. This was offset by decreased shipments in January as a result of an extended holiday shutdown at our Italian facility due to a physical inventory count. In addition, our efforts to raise selling prices have resulted in lower sales to some customers. Details of the net sales increase over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

The gross profit percentage improvement in Europe is due to lower costs and increased operational efficiencies in the current year as a result of our past restructuring efforts. In addition, we implemented price increases on certain products. In fiscal 2010 we experienced considerable disruption and inventory write offs as a result of restructuring activities.

Fiscal 2011 results include $1.2 million of restructuring costs primarily related to the closure of certain European sales offices and a building write-down in Hagen, Germany. Fiscal 2010 results include $12.1 million of restructuring costs primarily related to shutting down production at our fork facility in Germany.

Summary financial results are outlined below (in thousands):

Three Months Ended January 31

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Australia flood costs

Operating income (loss)

Net sales increased due to higher sales volumes as a result of an improvement in economic conditions and lift truck market. Details of the net sales increase over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

The gross profit percentage during fiscal 2011 in Asia Pacific decreased due to inventory related write-offs of $2.2 million as a result of the flooding in Australia.

Selling and administrative costs increased due to higher selling and personnel costs.

In addition to the $2.2 million inventory write-off recorded in cost of goods sold, we recorded charges of $2.5 million for fixed asset impairments and $0.5 million for other costs as a result of the flooding in Australia during fiscal 2011. The Company continues to work with its insurance carriers and landlord to assess the amount of damage to equipment and inventory and the impact on business operations. During 2012, we expect to recover, from insurance proceeds, a substantial portion of losses from asset write-offs and interruptions to business operations related to the flood. Through our global organization we are working to meet our customers’ needs while we restore our Australian facility to full operation.

The earthquake and subsequent tsunami in Japan did not directly impact our facility in Osaka, Japan. However, it is too early to assess the indirect effect on our business. The impact to our consolidated results should not be material as Japan accounted for only 6% of our fiscal 2011 global revenue.

Summary financial results are outlined below (in thousands):

Three Months Ended January 31

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Operating income

Net sales increased due to an increase in sales volumes as a result of the recovery of the Chinese economy and lift truck market. Details of the net sales increase over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

Transfers between areas increased due to increased customer demand as a result of improved economic conditions in Europe and Asia Pacific.

Gross margin percentages in China decreased primarily due to changes in product mix, and higher intercompany transfers, which carry lower margins.

Selling and administrative costs increased 31%, excluding foreign currency changes, due to higher personnel, research and development and other general costs.

Results and comments for the fiscal year ending January 31, 2011 are as follows (in thousands, except earnings per share):

Year Ended January 31

Net sales

Gross profit

Gross profit %

SG&A

Australia flood costs

European restructuring costs

Operating income (loss)

Interest expense, net

Foreign currency loss, net

Income (loss) before taxes

Provision for income taxes

Effective tax rate

Net income (loss)

Diluted earnings per share

Consolidated revenue was 29% higher than the prior year, excluding the impact of currency changes, due to higher sales volumes in all regions. Details of the revenue increase follow (in millions):

North America

Europe

Asia Pacific

China

Foreign currency changes

Total

SG&A expenses in fiscal 2011 were 4% higher, excluding the impact of currency changes, due to increased personnel and selling costs. Regional details of the increase in SG&A expense follows (in millions):

North America

Europe

Asia Pacific

China

Foreign currency changes

Total

On March 29, 2011, our Board of Directors declared a quarterly dividend of $0.20 per share, payable on May 12, 2011 to shareholders of record as of April 27, 2011.

Our annual shareholder meeting will take place on Wednesday, June 1, 2011 at 10:00 a.m., Pacific time, at our corporate headquarters in Fairview, Oregon.

Net sales

Cost of goods sold

Gross profit

Selling and administrative expenses

Australia flood costs

European restructuring costs

Asset impairment charge

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 $1,196 and $1,328

Inventories

Deferred income taxes

Assets available for sale

Prepaid expenses and other

Total current assets

Property, plant and equipment, net

Goodwill

Deferred income taxes

Other assets

Total assets

Current liabilities:

Notes payable to banks

Current portion of long-term debt

Accounts payable

Accrued payroll and payroll taxes

Accrued restructuring costs

Accrued incentive pay

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

Commitments and contingencies

Shareholders’ equity:

Common stock, $.50 par value, 40,000 authorized shares; 10,972 and 10,885 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 offs due to restructuring

Asset write offs due to flooding

Depreciation

Amortization

Share-based compensation

Deferred income taxes

Loss (gain) 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

Cash dividends paid

Common stock issued under share-based compensation plans

Tax effect on share-based compensation

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