Forklift attachments maker Cascade Corp reports progress in Europe, receipt of insurance proceeds from the Australian floods and higher profits and sales. Cascade filed its report on 2 June for the first fiscal quarter ended 30 April.

"(Cascade) posted profitability in Europe for the first time in three years despite the fact that volumes remain 35% below that time period," says C Schon Williams, vice president for industrial machinery equity research with BB&T Capital Markets of Richmond, Virginia. "We believe the restructuring in Europe alone could add USD0.50-USD0.75 to peak (earnings per share)." Management has delivered on profitability and investors need to start paying attention to the company's performance in Europe, he notes.

Over three years, Cascade restructured its European business at a cost of about USD34 million. As Cascade reported on 4 April, "Our most recent efforts have focused on implementing price increases for certain products and increasing the percentage of China-sourced products sold in Europe. We remain confident we will achieve our objective of profitability in Europe in fiscal 2012."

During January, river flooding significantly damaged the leased 46,000 sqft. (4,140 sqm) facility and operations of subsidiary Cascade Australia Pty Ltd in Rocklea, Queensland, Australia, an industry-focused suburb south of Brisbane. Australian operations account for about 5% of Cascade's global revenues.

"This disaster is having a significant impact on the Brisbane area," says Robert Warren, Cascade Corp chief executive officer and president. "I feel very fortunate that our employees were able to manage through the event and are safe."

Assessment of damage to equipment and inventory continues. Cascade is working with insurance carriers and its landlord.

During the first quarter, "we recorded USD1.5 million of income related to flood insurance proceeds," Cascade reports. "This income was allocated USD729,000 to cost of goods sold and USD752,000 as a separate component of operating income. The after-tax impact of these items increased net income by USD1.0 million. We anticipate recovering up to an additional USD5 million of flood insurance proceeds during the remainder of fiscal 2012."

Cascade had profit of USD16.4 million on the quarter's sales of USD136.2 million compared with profit of USD5.7 million on sales of USD94.4 million in the previous year's comparable quarter.

In the comparable quarterly results, Cascade sales in the Americas region increased 57% to USD71.7 million, those in Europe 18% to USD27.4 million, those in the Asia-Pacific region 19% to USAD18.1 million and those in China 41% to USD18.9 million.

On 1 June, the Cascade board of directors declared a quarterly dividend of USD0.20 per share, payable on 15 July to shareholders of record as of 1 July.