<PAGE>


                          SECURITIES AND EXCHANGE COMMISSION              
                               Washington, D.C.  20549               
                   
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                                      FORM 10-Q            
                   
                   
  (Mark one)
                   
                    (X)  QUARTERLY REPORT PURSUANT TO SECTION 13              
                   OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934            
                   
                   For the quarterly period ended October 31, 1997
                   
                                          OR

                   ( )  TRANSITION REPORT PURSUANT TO SECTION 13 OR          
                    OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934         
                   
                   
                   
                           COMMISSION FILE NUMBER  2-23666

                   
                   
                                 CASCADE CORPORATION

                                AN OREGON CORPORATION
                  I.R.S. Employer Identification Number   93-0136592
                                2201 N.E. 201st Avenue
                               Fairview, Oregon  97024
                                    (503) 669-6300


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    Indicate by check mark whether the registrant  (1)  has filed all reports  
required to be filed by Section 13 or 15(d) of the Securities Exchange Act   
of 1934 during the preceding 12 months (or for such shorter period that the   
registrant was required to file such reports), and  (2)  has been subject to
such filing requirements for the past 90 days.     YES   X       NO       
                                                      ----         ----
                   
    Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:  common shares outstanding 
11,831,704, net of treasury shares.
                   

<PAGE>

                   
                   

CASCADE CORPORATION AND SUBSIDIARY COMPANIES     
              PART 1
CONSOLIDATED BALANCE SHEET   
 (in thousands, except share data)     
                                                 October 31,    January 31,
                                                   1997           1997
                                                 -----------    -----------
                                                 (unaudited)
ASSETS

Current assets:
   Cash and cash equivalents                      $  12,083    $  15,642
   Accounts receivable, less allowance
    for doubtful accounts of $698 and $227           66,808       43,469
   Inventories, at average cost
    which is lower than market:
     Finished goods and components                   43,716       26,701
     Goods in process                                 2,426        4,634
     Raw materials                                    9,221        4,667
                                                  ---------    ---------
                                                     55,363       36,002

   Deferred income taxes                                118        1,496
   Insurance settlement receivable                    3,000
   Prepaid expenses                                   2,113        2,020
                                                  ---------    ---------
       Total current assets                         139,485       98,629

Property, plant and equipment, at cost less
  accumulated depreciation                          108,092       81,393
Deferred income taxes                                 2,162        1,139
Goodwill and other assets                           105,762       18,332
                                                  ---------    ---------
       Total assets                              $  355,501   $  199,493
                                                  ---------    ---------
                                                  ---------    ---------
LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Notes payable to banks                        $  113,001    $  29,846
   Current portion of long-term debt                  4,341        2,264
   Accounts payable                                  28,124       21,373
   Accrued payroll and payroll taxes                  6,846        4,222
   Other accrued expenses                            12,806        8,174
                                                  ---------    ---------
       Total current liabilities                    165,118       65,879

Long-term debt                                       36,172       12,810
Deferred income taxes                                 3,385        5,151
Accrued environmental expenditures                   13,112        8,913
Other liabilities                                     3,960        3,033
                                                  ---------    ---------
       Total liabilities                            221,747       95,786
                                                  ---------    ---------
                                                  ---------    ---------

Mandatorily redeemable convertible preferred 
  stock, no par value, 330,000 shares issued          4,950        4,950
                                                  ---------    ---------
                                                  ---------    ---------
Shareholders' equity:
   Exchangeable preferred stock, no par value,
    1,100,000 and 0 shares authorized, issued and
    outstanding at October 31, 1997 and 
    January 31, 1997                                 15,640
  Common stock, $.50 par value, 20,000,000 shares
    authorized, 11,988,208 and 12,048,208 shares 
    issued                                            5,994        6,024
  Additional paid-in capital                          2,246
  Retained earnings                                 109,416       94,561
  Cumulative foreign currency
    translation adjustments                          (4,211)      (1,142)
  Treasury stock, at cost
    (156,504 and 381,504 shares)                       (281)        (686)

                                                  ---------    ---------
       Total shareholders' equity                   128,804       98,757
                                                  ---------    ---------
       Total liabilities and
         shareholders' equity                    $  355,501   $  199,493
                                                  ---------    ---------
                                                  ---------    ---------
    
The accompanying notes to consolidated financial statements are an integral part
of this statement.                                         
    

<PAGE>

          
CASCADE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS

(unaudited - in thousands, except share and per share data)
<TABLE>
<CAPTION>
                              
                              
                                   Three months ended       Nine months ended
                                        October 31               October 31
                              ------------------------ ------------------------
                                   1997        1996         1997        1996
                              -----------  ----------- -----------  -----------
<S>                           <C>          <C>         <C>          <C>
Net sales                    $    97,525  $    54,870 $   272,590  $   166,685
                             -----------  ----------- -----------  -----------
                                                                              
Costs and expenses:                     
  Cost of goods sold, 
    excluding depreciation        68,295       35,710     188,980      108,820
  Depreciation                     5,715        2,440      15,740        7,715
  Selling and administrative 
    expenses                      16,415        9,920      47,125       29,685
  Environmental insurance 
    settlement, net               (4,920)                 (14,170)
                             -----------  ----------- -----------  -----------
                                  85,505       48,070     237,675      146,220
                             -----------  ----------- -----------  -----------
  
Operating income                  12,020        6,800      34,915       20,465
                                                                                
  Interest expense                 2,650          210       7,125          620
  Interest income                   (330)        (180)       (580)        (650)
  Other expense (income), net       (170)         330        (550)         945
                             -----------  ----------- -----------  -----------
                                                                              
Income before taxes                9,870        6,440      28,920       19,550
Income taxes                       3,390        2,075       9,835        6,460
                             -----------  ----------- -----------  -----------

Net income                         6,480        4,365      19,085       13,090
                                                                              
                                                                              
  
Retained earnings, beginning 
  of period                      104,491       90,388      94,561       85,083
Stock repurchase                               (1,317)                  (2,607)
Cash dividends                    (1,555)      (1,051)     (4,230)      (3,181)
                             -----------  ----------- -----------  -----------
Retained earnings, end 
  of period                  $   109,416  $    92,385 $   109,416  $    92,385
                             -----------  ----------- -----------  -----------
                             -----------  ----------- -----------  -----------
                                                                              
  
Net income per share         $      0.49  $      0.37 $      1.46  $      1.11
                             -----------  ----------- -----------  -----------
                             -----------  ----------- -----------  -----------
                                                                              
  
Dividends per share          $      0.10  $      0.09 $      0.30  $      0.27
                             -----------  ----------- -----------  -----------
                             -----------  ----------- -----------  -----------
                                                                              
  
Weighted average shares 
  outstanding                 13,261,704   11,744,856  13,089,873   11,818,164
                             -----------  ----------- -----------  -----------
                             -----------  ----------- -----------  -----------

</TABLE>

The accompanying notes to consolidated financial statements are an integral part
of this statement.                                               

<PAGE>

CASCADE CORPORATION AND SUBSIDIARY COMPANIES 
CONSOLIDATED STATEMENT OF CASH FLOWS    
      (unaudited - in thousands)                       Nine months ended
                                                            October 31
                                                    ---------------------
                                                       1997        1996
                                                    --------    ---------
Cash flows from operating activities:                      
  Net income                                        $ 19,085     $ 13,090
  Adjustments to reconcile net income to net               
    cash provided by operating activities:                   
     Depreciation and amortization                    15,740        7,715
     Deferred income taxes                            (2,933)         (19)
  Changes in operating assets and liabilities:             
    Accounts receivable                               (5,781)        (234)
    Inventories                                       (4,315)      (1,298)
    Insurance settlement receivable                  (13,067)
    Prepaid expenses                                     321         (455)
    Accounts payable and accrued expenses             (2,392)      (7,195)
    Accrued environmental expenditures                 6,187
    Other liabilities                                 (1,627)          70
                                                    --------    ---------

    Net cash provided by operating activities         11,218       11,674
                                                    --------    ---------
Cash flows from investing activities:                      
  Acquisition of property, plant and equipment       (13,302)     (12,074)
  Business acquisitions                              (70,741)
  Other assets                                           102         (573)
                                                    --------    ---------

    Net cash used in investing activities            (83,941)     (12,647)
                                                    --------    ---------

Cash flows from financing activities:                      
  Long-term debt, including current portion           (6,724)      (1,378)
  Notes payable to banks                              79,544           20
  Stock repurchase                                    (1,035)      (3,286)
  Cash dividends                                      (4,230)      (3,181)
                                                    --------    ---------
    Net cash provided by (used in) financing 
     activities                                       67,555       (7,825)
                                                    --------    ---------

Effect of exchange rate changes                        1,609          258
                                                    --------    ---------

Decrease in cash and cash equivalents                 (3,559)      (8,540)

Cash and cash equivalents at beginning of year        15,642       23,326
                                                    --------    ---------

Cash and cash equivalents at end of period          $ 12,083     $ 14,786
                                                    --------    ---------
                                                    --------    ---------

Supplemental disclosure of cash flow information:          
  Cash paid during the period for:                         
    Interest                                        $  5,685     $    574
    Income taxes                                    $  7,724     $  6,376


The accompanying notes to consolidated financial statements are an integral part
of this statement.  
          

<PAGE>


CASCADE CORPORATION AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - ACQUISITIONS

The consolidated financial statements for the nine months ended October 31, 1997
reflect the acquisition of Kenhar Corporation (Kenhar) and Hyco-Cascade Pty.
Ltd. ( Hyco) by the Company.  The aggregate purchase price for the Kenhar
acquisition was approximately $71.9 million and includes $55.9 million in
borrowings and approximately $15.6 million in preference shares exchangeable
share for share into Cascade Corporation common stock.  The aggregate  Hyco
acquisition cost was approximately $12.6 million which consisted of $1.2
million, $3.6 million and $7.8 million in cash, stock and debt.  As part of the
Hyco acquisition agreement, if certain of Hyco's sales reach specified targets
over each of the next two years additional consideration totalling $1.5 million
will be paid. 

The borrowings used in the acquisitions were funded using a short-term line of
credit.  Subsequent to quarter end the Company issued long-term notes to
refinance this debt.  See Note 4.

NOTE 2 - PRO FORMA INFORMATION

In accordance with APB 16, the following unaudited pro forma information is
provided.  The total revenues include the consolidated revenues of the Company
as reported and the net revenues of the acquired business as if they had been
acquired as of the beginning of the period.  The acquired businesses include
Kenhar, Hyco, Industrial Tire Limited, White Systems International Pty. Ltd. and
EML Industry AB.  The revenues have not been adjusted to consider any benefit
that may have occurred from the combination of the operations.  The pro forma
net income and net income per share have been adjusted to include the additional
costs of depreciation, goodwill amortization and interest expense based on the
actual purchase price and related borrowings.  Expenses have not been reduced to
reflect any operational efficiencies that may have resulted from the combination
of the entities.  The unaudited pro forma information is not necessarily
indicative of what actual results would have been had the acquisitions been
completed by the Company at the beginning of the periods.

                              NINE MONTHS ENDED OCTOBER 31
                                 1997             1996
                         (Dollars in thousands except per share)
UNAUDITED

Total Revenue                 $  280,269     $   270,391
                              ----------     -----------
                              ----------     -----------
Net Income                    $   19,228     $    10,900
                              ----------     -----------
                              ----------     -----------
Net income per share          $     1.45     $       .81
                              ----------     -----------
                              ----------     -----------

NOTE 3 - ENVIRONMENTAL INSURANCE SETTLEMENT

Earnings for the three months ended October 31, 1997 include the effect of a
$14,000,000 settlement of claims against four insurance companies in connection
with environmental matters ($3,245,000 or $.25 per share after taxes, adjusted
for certain litigation expenses and after providing for certain future
environmental expenses).   The $14,000,000 is due in three installments which
extend into the year 1999.  Earnings for the nine months ended October 31, 1997
also include the effect of a $9,750,000 settlement of claims in connection with
environmental matters ($6,105,000 after taxes adjusted for accrued expenses
related to litigation).

<PAGE>


CASCADE CORPORATION AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 4 -  SUBSEQUENT EVENT


Subsequent to October 31, 1997, the Company and it subsidiaries issued $25
million and $50 million in Series A Notes and Series B Senior Notes
(collectively referred to as "the Notes").  The proceeds received from the sale
of the Notes were used to repay existing debt.  Among other restrictions, the
debt agreements contain financial covenants relating to specified levels of
indebtedness and net worth.  Principal payments are due annually beginning in
2002 through 2007.  Interest is paid semi-annually at 6.92%.

<PAGE>



ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Consolidated net sales for the three months ended October 31, 1997 totaled 
$97,525,000, an increase of 77.7% compared to sales of $54,870,000 recorded 
in the third quarter of 1996.  Net income for the third quarter of 1997 was 
$6,480,000 ($.49 per share) or 48.5% higher than net income of $4,365,000 
($.37 per share) for the corresponding 1996 period. Earnings for the quarter 
include the effect of a $14,000,000 settlement of claims against four 
insurers in connection with environmental matters ($3,245,000 or $.25 per 
share after taxes, adjusted for certain litigation expenses and after 
providing for certain future environmental expenses). Expressed as a return 
on sales, net income for the third three-month period of 1997 was 3.3% before 
the insurance settlement. Trial with respect to other insurers concluded 
during the quarter with a favorable verdict.  Final court rulings are 
pending.  The quarter results were also affected by consolidation of several 
acquisitions completed earlier in 1997.

Consolidated net sales for the first nine months of 1997 totaled 
$272,590,000, an increase of 63.5% compared to sales of $166,685,000 recorded 
in the first three quarters of 1996.  Net income for the first nine months of 
1997, including current and previously announced environmental insurance 
settlements, was $19,085,000 ($1.46 per share) or 45.8% higher than net 
income of $13,090,000 ($1.11 per share) for the corresponding 1996 period.

The lift truck industry remains very strong in our major markets.  North 
American factory orders for new trucks continue to outpace shipments, and the 
resulting original equipment manufacturer (OEM) backlogs suggest that demand 
for attachments, forks and tires will remain high throughout 1998.  While 
European OEM numbers are not as dramatic, they continue to show solid 
improvement over 1996, and industry analysts forecast continued modest growth 
into 1999.  

In Asian markets,  major currency movements have occurred with respect to the
U.S. Dollar and business conditions are uncertain.  The Company's exposure in
these markets is limited.  Over the long-term, Asian markets will provide
significant growth for the full range of Cascade products, and we intend to
continue to serve this important region of the world.

All of the Company's operations showed operating profit improvement in the 
third quarter, with the exception of our Australian subsidiary, Hyco-Cascade. 
Steps were being taken to return Hyco-Cascade to profitability.  Those steps 
included a substantial reduction in personnel and expenses, and as a result, 
Hyco-Cascade reported a profitable October, after significant losses in 
August and September. Incoming orders and factory operations continue to 
improve in Australia and we remain confident that Hyco-Cascade will be 
profitable in 1998.

<PAGE>

 
LIQUIDITY AND CAPITAL RESOURCES

During the first nine months of 1997, the Company generated $11,218,000 in 
cash flows from operating activities.  These cash flows were primarily 
provided by net income and include the results of Kenhar Corporation and 
Hyco-Cascade subsequent to their acquisition in the first quarter and the 
receipt of an environmental insurance settlement of $9,750,000 in the second 
quarter; offset by recognition of the third quarter insurance settlement 
which will be collected in three subsequent installments.  Cash used by 
investing activities through October 31, 1997 totaled $83,941,000 and 
includes $70,741,000 used to complete the Company's fiscal 1998 acquisitions. 
Year to date cash provided by financing activities was primarily generated 
from short-term bank borrowings (used to pay for the current year 
acquisitions) and totaled $67,555,000. 

In summary, cash on hand, along with $63,170,000 drawn on available lines of 
credit, issuance of exchangeable preferred stock valued at $15,640,000 and 
issuance of Cascade common shares valued at $3,365,000 was used to acquire 
all of the outstanding stock of Kenhar Corporation and Hyco-Cascade Pty. Ltd. 
during the first quarter of 1997.

As of October 31, 1997, the Company and its subsidiaries had lines of credit 
available totaling $141,582,000 ($28,581,000 of which was unused at October 
31, 1997).

Over the preceding five years, expenditures for new facilities, machinery, 
equipment and tooling have totaled approximately $47,000,000.  Capital 
expenditures of $15,347,000 have been recorded during the first nine months 
of this fiscal year.  This is higher than the $12,074,000 recorded during the 
corresponding period in 1996.  Planned expenditures for 1997 total 
$18,500,000. During the quarter a major expansion and remodel of the Portland 
offices was completed.  This and other capital expenditures are directed at 
increased productivity, quality improvements and new product introductions.  
The Company used cash generated from operations and existing credit 
facilities to fund these expenditures.  Future capital expenditures will come 
from similar sources.

In early November, the Company purchased the manufacturing assets of North 
Carolina Hydraulics Manufacturing Company of Beulaville, North Carolina for 
$3,243,000.  NC Hydraulics is a well-established, quality manufacturer of 
hydraulic cylinders supplying the mobile materials handling industry and we 
are pleased to welcome its employees to our team.  This purchase is the first 
step in executing our long-standing plan to duplicate our European success in 
the hydraulic cylinder business here in North America.

The Company's total long and short-term debt to equity ratio was 1.19 to 1.00 
and working capital was a negative $25,633,000. Included in working capital 
are borrowings under short-term credit lines used for temporary financing of 
the acquisitions completed during the past quarters.  Subsequent to quarter 
end, the Company placed $75,000,000 principal amount Senior Unsecured Notes 
to institutional investors.  This private placement, with a very favorable 
interest coupon of 6.92% fixed for ten years, is an important part of our 
planned refinancing of short-term debt owed under the company's revolving 
credit facility.  The proceeds were used to retire existing borrowings. The 
Company's available cash and credit facilities plus cash flows generated from 
operating activities are more than sufficient to meet its short-term cash 
requirements.

During the third quarter the U.S. dollar weakened slightly against the major
foreign currencies affecting our financial consolidations.  However, for the
nine months ended October 31, 1997 the U.S. dollar strengthened against the
Dutch guilder and the Canadian dollar. As a result, the adjustment for currency
translation in our financial statements reflects a credit to shareholders'
equity of $471,000 ($.04 per share) for the current quarter and a charge of
$3,069,000 ($.23 per share) for the nine months ended October 31, 1997.



<PAGE>




                    CASCADE CORPORATION AND SUBSIDIARY COMPANIES

                                       PART II

ITEM 1.   LEGAL PROCEEDINGS
                                        
          Neither the Company nor any of its subsidiaries are involved in any
          material pending legal proceedings other than enviromental litigation
          or litigation incidental to the regular course of business.  The
          company and its subsidiaries are adequately insured against product
          liability, personal injury and property damage claims which may arise
          occasionally.       
                                        
                                        

ITEM 2.   CHANGES IN SECURITIES                                  

               None



ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

               None


ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

               None


ITEM 5.   OTHER INFORMATION

               None


ITEM 6.   EXHIBIT AND REPORTS ON FORM 8-K

               None





<PAGE>



                     CASCADE CORPORATION AND SUBSIDIARY COMPANIES
                                   
                                      SIGNATURES


     The enclosed financial statements have not been certified by independent
accountants.  However, to the best of my knowledge and belief these financial
statements have been prepared in conformity with generally accepted accounting
principles and on a basis substantially consistent with audited financial
statements included in the annual report filed with the Commission for the
preceding fiscal year.

     The Company believes that all adjustments, consisting of normal recurring
adjustments, necessary for a fair statement of the results of operations, have
been included.                          

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                           CASCADE CORPORATION
                                   
                                   
                                   
        12/12/97                        /s/ James P. Miller
     ----------------              -------------------------------------
          Date                               James P. Miller
                                        Executive Vice President
                                               Secretary
                                   
                                   
                                   
        12/12/97                          /s/ Kurt G. Wollenberg
     ----------------              -------------------------------------
          Date                               Kurt G. Wollenberg
                                                 Treasurer