Net sales of $136.2 million for the first quarter of fiscal 2012 were 40% higher than net sales of $94.4 million for the first quarter of fiscal 2011, excluding the impact of changes in foreign currency exchange rates.

Our net income for the first quarter of fiscal 2012 was $16.4 million ($1.46 per diluted share) compared to $5.7 million ($0.51 per diluted share) for the first quarter of fiscal 2011.

During January 2011, our operations in Australia were significantly damaged due to flooding. During the first quarter of fiscal 2012, we recorded $1.5 million of income related to flood insurance proceeds. This income was allocated $729,000 to cost of goods sold and $752,000 as a separate component of operating income. The after tax impact of these items increased net income by $1.0 million ($0.09 per diluted share). We anticipate recovering up to an additional $5 million of flood insurance proceeds during the remainder of fiscal 2012.

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

Three Months Ended April 30

Net sales

Cost of goods sold

Gross profit

Gross profit %

SG&A

Australia flood insurance proceeds, net of costs

Operating income

Interest expense, net

Foreign currency loss, net

Income before taxes

Provision for income taxes

Effective tax rate

Net income

Diluted earnings per share

Consolidated net sales increased 40% during the first quarter of fiscal 2012 over the first quarter of fiscal 2011, excluding the impact of foreign currency changes, due to higher sales volumes as a result of improving economic conditions and a very strong global lift truck market. Details of the change in net sales compared to the prior year first quarter follow (in thousands):

Net sales change

Foreign currency change

Total

The consolidated gross profit percentage increased during the first quarter of fiscal 2012 from 29% to 33%, primarily as a result of improved cost absorption due to increased sales volumes and the benefit of cost cutting measures implemented in the past. Additionally, gross profit includes net insurance proceeds of $729,000 related to the flood in Australia.

Selling and administrative expenses increased 10%, excluding foreign currency changes, primarily due to additional personnel costs.

The effective tax rate for the first quarter of fiscal 2012 was 32% compared to 35% for the first quarter of fiscal 2011. The decrease in the effective tax rate is primarily a result of current year income in Europe, which was offset by historical losses.

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, it does not necessarily correlate directly with the demand for our products on a quarterly basis.

Americas

Europe

Asia Pacific

China

Global

Current order and shipment rates illustrate that global lift truck markets are recovering. At the present time we expect the strong lift truck market to continue through the remainder of fiscal 2012. We expect our quarterly sales for the remainder of fiscal 2012 to approximate sales levels we experienced in the first quarter, but adjusted for fewer working days as a result of holiday shutdowns during the summer months and December.

Summary financial results are outlined below (in thousands):

Three Months Ended April 30

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Operating income

Net sales increased 57%, excluding the impact of currency changes, 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

Transfers to other Cascade locations increased due to fulfillment of orders in Australia.

Our gross profit percentage increased due to improved cost absorption as a result of higher sales volumes during the current year.

Selling and administrative costs increased 15% due primarily to additional personnel costs in the current year resulting from our improved financial performance.

Summary financial results are outlined below (in thousands):

Three Months Ended April 30

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Operating income (loss)

Net sales increased 18%, excluding the impact of currency changes, due to higher sales as a result of a stronger lift truck market and price increases. Details of the change in net sales over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

The improvement in our gross profit margin is due to our restructuring efforts to reduce our overall cost structure, increased cost absorption as a result of higher sales volumes, a shift in sourcing more products from China and sales price increases for certain products.

The last time our European operation posted positive operating income was the third quarter of fiscal 2009 when net sales were $42 million. While this is only one quarter’s results, we expect the current structure will put us in the position of achieving sustained profitability in Europe through the remainder of the year.

Summary financial results are outlined below (in thousands):

Three Months Ended April 30

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Australia flood insurance proceeds, net of costs

Operating income

Net sales increased 19%, excluding the impact of currency changes, due to higher sales volumes as a result of an improvement in economic conditions and a strong lift truck market. Details of the change in net sales over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

Our gross profit percentage increased compared to the prior year primarily due to insurance proceeds related to the Australia flood.

Summary financial results are outlined below (in thousands):

Three Months Ended April 30

Net sales

Transfers between areas

Net sales and transfers

Gross profit

Gross profit %

SG&A

Operating income

Net sales increased 41%, excluding currency changes, primarily due to the growth of the Chinese economy and a strong lift truck market. Details of the change in net sales over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

Transfers between areas increased due to increased customer demand in Europe and Asia Pacific and to fulfill orders in Australia due to the flood.

The gross profit percentage in China decreased due to changes in product mix and higher intercompany transfers, which carry lower gross margins, increases in material costs and competitive factors.

Selling and administrative costs increased 37%, excluding currency changes, primarily due to higher personnel, marketing and research and development costs.

On June 1, 2011, our Board of Directors declared a quarterly dividend of $0.20 per share, payable on July 15, 2011 to shareholders of record as of July 1, 2011.

Net sales

Cost of goods sold

Gross profit

Selling and administrative expenses

Australia flood insurance proceeds, net of costs

Operating income

Interest expense, net

Foreign currency loss, net

Income before provision for income taxes

Provision for income taxes

Net income

Basic earnings per share

Diluted earnings 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 $1,323 and $1,196

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

Dividends payable

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; 11,057 and 10,972 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

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

Depreciation

Amortization

Share-based compensation

Deferred income taxes

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 (used in) 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

Net cash provided by 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