Net sales of $141 million for the first quarter of fiscal 2013 were 5% higher than net sales of $136 million for the first quarter of fiscal 2012, excluding the impact of changes in foreign currency exchange rates.

Our net income for the first quarter of fiscal 2013 was $15.2 million ($1.34 per diluted share) compared to $16.4 million ($1.46 per diluted share) for the first quarter of fiscal 2012. The prior year results include net insurance proceeds due to a flood in Australia. The after tax impact of these proceeds increased net income by $1 million ($.09 per diluted share).

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

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 during the first quarter of fiscal 2013 increased 5% over the first quarter of fiscal 2012, excluding the impact of foreign currency changes. The increase in net sales was due to higher sales volumes as a result of a strong global lift truck market and sales price increases. 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 during the first quarter of fiscal 2013 decreased to 31% from 33% in the prior period, primarily due to higher sales of lower margin product during the current year. In addition, the prior year gross profit includes net flood insurance proceeds of $0.7 million, which increased the gross profit percentage by 1%.

Selling and administrative costs increased 11%, excluding the impact of foreign currency changes. The increase is primarily due to higher personnel costs, professional and legal expenses, IT consulting fees and warranty charges.

The effective tax rate for the first quarter of fiscal 2013 was 26% compared to 32% for the first quarter of fiscal 2012. The decrease in the effective tax rate is primarily a result of the release of an additional $1.7 million of tax valuation allowance in The Netherlands during the current quarter. This release was primarily a result of a projected increase in future taxable income in The Netherlands due to the reduction of interest expense and the transfer of intercompany financing activities to The Netherlands from Ireland.

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

The global lift truck market has continued to experience volatility in the first quarter. The Americas and Asia Pacific markets are experiencing flat to moderate growth. China’s market has recovered from the fourth quarter but shipments are below prior year levels. The European lift truck market has begun to experience a slowdown with recent orders. The European debt crisis and other economic factors in the European Union could have a negative impact on our business and global lift truck markets.

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

Operating income %

Net sales increased 6%, excluding the impact of currency changes, due to higher sales volumes as a result of a strong lift truck market in the Americas, higher sales of products to the construction industry and sales price increases. 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 decreased due to higher sales of lower margin product and start-up costs related to the ramp up in sales of construction attachments.

Selling and administrative costs increased primarily due to consulting, warranty, professional fees and other general costs.

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

Operating income %

Net sales increased 4%, excluding the impact of currency changes, primarily as a result of price increases implemented during fiscal 2012. Details of the change in net sales over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

Our European business experienced comparable operating income between years as our cost of goods sold and selling and administrative expenses remained in line with sales levels.

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

Operating income %

Net sales increased 14%, excluding the impact of foreign currencies, primarily due to higher sales volumes as a result of a strong lift truck market throughout the region. Details of the change in net sales over the prior year quarter follow (in thousands):

Net sales change

Foreign currency change

Total

Our prior year gross profit percentage included net insurance proceeds of $0.7 million related to the Australia flood. Without these insurance proceeds, the gross profit percentage would have been 28% for both years.

In total, during the first quarter of fiscal 2012, we received insurance proceeds in the amount of $3.5 million and incurred an additional $2.0 million in costs related to the Australia flood. We did not receive any insurance proceeds and did not incur any significant flood related costs during the first quarter of fiscal 2013.

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

Operating income %

Net sales decreased 12%, excluding currency changes, primarily due to a slowdown in the Chinese economy. 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, which carry lower margins, increased as a percent of total net sales and transfers from 28% to 33%. This was due to increased customer demand globally.

Our gross profit percentage decreased due to a higher percentage of transfers between areas and higher sales of lower margin product during the current year.

On June 6, 2012, our Board of Directors declared a quarterly dividend of $0.35 per share, payable on July 20, 2012 to shareholders of record as of July 5, 2012.

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

Cash dividends per share

Current assets:

Cash and cash equivalents

Accounts receivable, less allowance for doubtful accounts of $1,198 and $1,211

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 incentive pay

Dividends payable

Other accrued expenses

Total current liabilities

Long-term debt, net of current portion

Accrued environmental expenses

Deferred income taxes and other tax liabilities

Employee benefit obligations

Other liabilities

Total liabilities

Commitments and contingencies

Shareholders’ equity:

Common stock, $.50 par value, 40,000 authorized shares;

11,148 and 11,088 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 provided by (used in) operating activities:

Depreciation and amortization

Share-based compensation

Deferred income taxes

Tax effect on share-based compensation

Gain on disposition of assets, net

Changes in operating assets and liabilities, net of effect of business acquisition:

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 (used in) operating activities

Cash flows from investing activities:

Capital expenditures

Proceeds from disposition of assets

Business acquisition

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

Tax effect on share-based compensation

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